When and Where Should You Buy an Investment Property?

By understanding the property cycle, you increase your ability to create a positive return from your property investments.

At BAA Property we understand that properties don’t increase at a static rate. They move in an upward growth pattern which is typically followed by a fall.

Normally the fall is higher than the last, and then there may be short periods of no growth. The cycle repeats itself as per this illustration.

Using the Property Cycle for Fastest Growth

The BIG question for all investors wishing to grow a portfolio is when do you buy to get the fastest growth?

The secret is to observe the rental markets in the areas you wish to purchase. Rent after all is the determining factor when it comes to maintaining your investment and of course realising an income from the property.

Rent is a charged at a percentage of the property’s value, so if rents are increasing the value of the property is increasing. And if rents are decreasing then the property values are decreasing.

The advisors at BAA Property will assist you in purchasing properties at the bottom of the growth cycle, as we know what follows is the growth phase.

It is this approach that enables our investors to get the consistent increases in growth and of course rents, which increases the ability for our clients to grow their portfolio and to minimise the costs.