TIMING THE MARKET NO SUBSTITUTE FOR TIME IN THE MARKET

6th March 2007

Perth property buyers' agents Property Wizards are cautioning real estate buyers that "timing the market" is not a smart investment strategy.

Director Trevor Dunkley said in periods such as this, when the market was stabilising, many investors became increasingly concerned about whether or not it was the "right time" to enter the market.

"We are always being asked if it's the right time to enter the market - but the reality is that seasoned investors know there is no "right time" - the secret really is what's called time in the market," said Mr Dunkley.

"Timing the market is fraught with danger. By taking a medium to long-term approach to investing, where real growth can be achieved over time, buyers of all types can succeed."

Mr Dunkley the key was to recognise that there were opportunities for investors in all markets.

"If you're prepared to search, or engage an expert to search for you, it is always possible to find a superior investment - not matter where the market is in the cycle," he said.

"Properties that can be developed or renovated to add-value and those that have all the key growth drivers working for them are the way to go to make money in any market."

Mr Dunkley also warned that waiting could be a costly mistake in real estate.

"Buyers who wait until a so-called better time to enter the market can pay dearly, as prices in areas with key growth drivers will continue to rise, throughout the different cycles, but by the time people wake up to this, they've often already missed the boat," he said.

"That's why we often hear people saying they're kicking themselves for not getting in the market earlier and that the area they wanted to buy into has now skyrocketed out of their reach."

He also said delaying buying in order to save a bigger deposit was another enemy investors should watch out for.

"This strategy sounds logical to most people, but it can have a huge negative impact on your hip pocket," he said.

"Waiting 5 years to save a bigger deposit so you can afford a more expensive property can cost a lot in lost equity and capital growth."

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450