What’s stopping you this year?

BY CHRIS GRAY, CEO, YOUR EMPIRE

The pain of making a poor financial decision often outweighs the pleasure of making a positive one, which is why most people sit on the fence, waiting for the perfect environment before deciding to buy or sell property.

To be fair, in the last few years, we have had a number of national and global events that have created more uncertainty than normal. Uncertainty can be an excuse for some, but for others, it leads to opportunity.

Just in case the past few years have distorted your memory, we’ve seen:

• Rising interest rates

• Falling property prices

• A banking Royal Commission

• A global pandemic

• A property market recovery

• A strong rental market

• A federal election

• Interest rates peaking

• Interest rates now dropping

That’s exactly the point – there is never a "perfect" time to buy property. I've been investing for over 30 years, and I have never seen a time where everything aligns perfectly. If you wait for certainty, you will likely never take action.

Now, we are shifting from a cycle of rising interest rates to interest rates on hold, and now, decreasing interest rates over the next few years. The recent rate drop has already started stimulating the market, as it reduces the cost of ownership and improves borrowers' serviceability, meaning they can afford to buy a more expensive home or investment property.

Many people use an election as an excuse to delay purchasing until they know who will be in government. The last time this happened, Labour suggested they might remove negative gearing, which should have encouraged buyers to act before the election since existing negative gearing benefits would have been grandfathered. However, most people ignored logic, waited, and would have lost out had the policy changed. This highlights an important lesson: most people don’t make decisions based on logic, and that’s why most don’t accumulate enough wealth for retirement. Those who think contrarian to the crowd and take action are the winners over the long term.

While the market remains strong, here are three simple rules I always follow for buying property:

1. Buy when you can secure a mortgage from the bank.

2. Buy the right property for a reasonable price.

3. Ensure you have a cash buffer to cover any short-term emergencies.

Often, the real upswing in the market happens in the New Year. People have taken a break, reassessed their goals, and are ready to take action. We've seen it before: the market picks up after an election, then really takes off in January and February.

The key lesson? Property is a long-term game. Historically, prices rise over time if you can hold on long enough. I’ve spoken to hundreds, if not thousands, of people who regret not taking action earlier. The only way to get ahead is to be in the market. So, what type of buyer are you