When is the best time to invest in Property?
Time in the Market vs. Timing the Market : What Smart Investors Understand.
“What with all the micro reporting data readily available today, perhaps investors decision making is becoming clouded and commitment is waning whilst waiting for that ‘perfect time’ to invest?!?” says Robert Kiyosaki
”The power of procrastination”
Astute investors know that by the time the media headlines announce a property boom or downturn, the market has often already shifted. That’s why successful property investment is rarely about timing the market—it’s about time in the market.
What truly matters is how long you hold a quality property asset. Over time, the compounding effect of capital growth significantly outweighs the short-term gains of trying to buy at the “perfect moment.” History and data consistently show that long-term ownership delivers stronger, more reliable returns.
In fact, if you hold a well-located investment property through two full growth cycles—typically within a 7 to 15-year period, you’re far more likely to benefit from substantial equity growth. Micro market fluctuations, media noise, or short-term economic shifts become less relevant when you’re invested for the long haul.
The biggest risk to many investors isn’t market timing – it’s indecision. With so much information (and misinformation) available, it’s easy to over analyse and delay action. But the cost of waiting can outweigh the perceived benefit of “buying at the bottom.” No one can predict the exact peak or trough of a market. What we can rely on is the consistent outperformance of long-term, deliberately selected property investments.
Real estate is not one single market, but a collection of localised “markets within markets.” What drives long-term growth are enduring fundamentals: population growth, infrastructure investment, employment opportunities, housing demand, lifestyle shifts, and affordability.
Emotion has no place in an investment strategy. Data, time-tested fundamentals, and a clear long-term plan are what deliver results.
”Timing is one of the most misunderstood concepts with regard to investing.”
Cannot generalise about property
Australia has eight States and Territories and the property markets in each of those locations can be performing differently at the same time. Also within each city, different suburbs will perform differently. This is just how the property market works!
Generalised statements lack location specific accuracy and detrimental to your own financial well-being. You may be waiting to see what is happening, whilst hundreds of postal can still growing in value. Check out the facts, they are readily available to you …. but more importantly trying to time the market is primarily punitive rather than beneficial in the medium to long term over the life of your investment.
Of course, property market moves in cycles, this is normal and will always occur. The main cause behind these cycles is market sentiment, population growth, government and industry investment into infrastructure, lifestyle, affordability and other factors which are known to influence property in a particular market.
Fact : no one really knows, not even the experts, how long a property cycle will last and the resultant financial effects will be as they are remain unpredictable! But we do know that trying to time the market is less beneficial than time in the market.
Is it possible to buy at the bottom and sell at the top of a property cycle?
The highly successful Warren Buffet lives by his creed “Be fearful when others are greedy and be greedy when others fearful.” This seems to continue to work for him, so why do you follow the herd mentality and be fearful when the media tell you to be?
Sure, market sentiment plays a significant role and continues to instill unfounded fear and if you were Warren Buffet you would be rubbing your hands in glee whilst identifying your next investment by making an informed decision … keep in mind there are hundreds of postal codes in Australia experiencing growth now and into the foreseeable future. Open up your mind to reality and possibility
Applying EMOTION to any Investment decision will guarantee you a lower return on your investment. BUT only 10% of the time.
trying to time the market is an emotional decision!
Timing the market or Investment Grade Properties?
“How may stories have you heard from people you know or have read about who by waiting missed out on securing an investment? What you would not hear about is how much they failed to secure through lost opportunity costs (paying away income tax that could have gone to their investment strategy, lost capital growth, lost rental income, missing out on securing that all important fundamental of compounding growth) by delaying their decision making??“
We all meet investors who miss out on a sound opportunity because they were so consumed with the emotion of timing the markets or “waiting to see what happens”. They never seem to actually make an informed decision. Why is that? Are they always on the hunt to secure a bargain when the market is dictating value or will these investors always look for reasons not to invest? I think the latter.
Sure an astute investor will always consider at what stage of the property cycle a particular location is experiencing and this forms part of your own due diligence and we highly recommend removing emotion and taking all fundamentals and market factors into account.
Experience proves that “a strategic investor will do well in any market cycle“, because they understand that it really amounts to sourcing an Investment Grade property and the “time in the market” that’s more important that trying to time the market. Look at any successful individual or family, when they are ready for their next investment, they undertake their research and invest.
Market timing fundamental mistake
“Informed property investors secure Investment Worthy properties whenever their time to invest is right for them, in a location that suites their strategy.” So this raises the question you would want to ask of yourself “why do you over complicate the decision? OR is this merely your personal delay / procrastination issues?”
The important part of that statement is that they always select “investment grade” properties because this type of real estate is proven to do well in all market conditions compared to other properties. Did you know that a vast majority of property are not investment grade?
You too can be an astute investor and invest when you have your finance ready or perhaps have built up enough equity in your portfolio to invest in a property.
Keep in mind that the micro market cycle in locations yo are considering, is less important if you’re committed to holding the property for the long-term. One should at least try to achieve two property growth cycles in any given 7 to 15 year period of holding onto your investment, to significantly improve your compounding growth opportunities. This will far outpace trying to buy at the bottom strategy, proven to always do so.
The selected property has way more importance, than timing the market.
There will always be property cycles when investing (stock market, art, diamonds, gold, banks or property) so expect cycles and look to maximise on the investment vehicle not the timing.
Why Timing Matters More for Strategy than Entry
Timing the market is far less important than aligning your investment strategy with your stage of life. As you approach key financial milestones—particularly retirement—reviewing and refining your investment portfolio becomes critical. This allows you to consolidate gains, reduce risk, and better position yourself to achieve your financial goals.
That said, with people living longer than ever, not all assets should be shifted into a conservative posture. Some portion of your portfolio should remain in a growth phase to protect against inflation and ensure your retirement savings continue to grow in real terms. This balance is where smart planning makes all the difference.
The most successful investors are those who make informed decisions and stay invested over time. Compounding equity—the consistent growth in property value over years—is what builds true wealth. And that only happens when you give your assets time to grow.
This is why “time in the market” with a well-selected, investment-grade property will always outperform efforts to “time the market.” There is no perfect time to buy—waiting for it often means missing out altogether.
The key is to act with clarity, not emotion, and let time and compounding do the heavy lifting.
Factually there is no perfect time to buy, it doesn’t exist.
Some investors advocate that you make your money when you buy, what this should read is “you make your money by investing in the right property” over and above buying a bargain which could be a second-rate property. Getting it right upfront is thus vital in your decision-making process.
Match the investment to your goals and investment strategy by understanding “Your Own Why” upfront before you even start going to market to seek out your investment.
In Summary
How much difference would it have made over the life of the investment if the investor got it wrong or right when investing through various property cycles from 1988 to 2025 in Australia?
How much difference would it make to you the investor investing at the worst time or the best time?
The difference comes from missing out on capital growth, compounding returns, tax deductions, rental income and increases in rental income … waiting means Lost Opportunity
Waiting also means missing out on securing your next Investment that much sooner.
Waiting means it is that much harder to pay off your own home loan or even buy the home you want to live in.
Realistically : how many people do you know who have genuinely gotten timing the market accurate?
An extremely small percentage of investors may! However the vast majority of property buyers, by the time data comes out the market has already moved thus are highly unlikely to pick the bottom anyway!!
Owning the right asset is way more critical than timing the market and once again the power of compounding returns demonstrates this as the wrong investment will grow significantly lower when compared to a better investment decision over the life of your investment.
Investment grade property always outperforms the average growth!
“Timing the market is statistically unpredictable and thus you are highly unlikely to get it right.”
Selecting an investment grade property statistically returns you an increased ROI ontop of which Compounding Growth further accelerates your increased wealth.
Disclaimer
The article is general information only and is intended as educational material. properT network, nor its associated or related entitles, directors, officers or employees intend this material to be advice either actual or implied. You should not act on any of the above without first seeking specific advice taking into account your circumstances and objectives.
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