When it comes to investing in property, most people's views on the "right time" to invest may vary. Some focus primarily on the market conditions, such as changes in interest rates and supply-demand ratio, while others focus on factors such as their income and personal financial circumstances.
If you are someone planning to invest in property and want to find out the right time to invest in property for you, here is the answer.
When planning to invest in property, it is wise to focus more on factors that are in your control, such as your personal and financial circumstances, in order to make the right choice.
So only you can decide on what is the best time to invest in property. Some of the factors that can help you make the right choice include the following.
Your Income Level
The right time to invest in property is during your peak earning years. During this time, you are usually young, and your income is steadily on the rise. Given these circumstances, you can always predict your income and have a practical expectation of your income levels for the next few years. Thus, you can plan on whether you will have enough savings to pay off your debt or not.
Another important consideration that you shouldn't miss out on is any possible personal/financial commitments you have for the next few years, as they can significantly impact your savings and your ability to pay off your debt.
Your Existing Debt
Before you invest in property, it’s best to reduce your non-deductible debt as much as possible. It is the type of debt that you cannot claim against your taxable income and include car loans, credit cards, and store cards. It makes sense to pay off your existing debt stretching your financial condition before you take more debt to pay off for your new property.
Repayment Ability If Interest Rates Change
Another critical thing that you must consider when deciding about the right time to invest in property is your ability to repay if the interest rates go up. Of course, it is beyond your control but when investing in property, make sure you are borrowing only to a level at which you can quickly meet repayments even if the interest rates rise. While there is no “ideal’ level of borrowing, it all depends on your personal and financial circumstances.
In a nutshell, there is no specific time that is "right" for investing in property. The right time to invest is when you are ready to invest in property, considering your personal and financial circumstances.
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