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There are some factors you should consider to get the desired result in property investment. One of these factors is time. You must make your investment at the right time, not at any time. So, is there a right time for property investment? If there is, when is the best time? With these recommendations, you will save your money!
The best time for investing in property is when the costs are the lowest. For this, loan rates, mortgage costs, property prices, and similar factors should be taken into account. Thus, the best time can be determined. The outstanding factors affecting the right time in property investment are listed below.
Factors Affecting the Right Time in Property Purchase
There is continuity in the property sector. Some investors want to sell their properties, while others want to invest in new ones. In other words, there is a continuous trading situation. However, in some periods, there may be a serious decrease in selling and buying. At such times, investors who have to sell their property for different reasons will pull the prices down.
If you regularly follow the properties for sale, you can see how the prices fluctuate. You can think that properties with reduced prices are under selling pressure. You can negotiate more easily for such properties and ask for extra discounts on the prices. This situation is usually experienced during the winter season.
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Whatever the sector is the higher the demand, the higher the prices. If there is competition in a field, prices inevitably increase. Therefore, when making your property investments, you should choose periods of low competition.
In the summer months, people are very interested in properties. In such periods, prices increase due to competition. However, competition is very low in December, January, and February. In these periods, people are less interested in properties. Therefore, competition decreases significantly. So an opportunity arises for you.
Costs of Unsold Houses
Especially in the winter period, there is a serious stagnation in property sales. Sellers continue to pay the expenses of the properties in this period as well. Therefore, every day they remain unsold, properties cause financial damage to the sellers. Sellers want to get rid of such properties as soon as possible. It is more convenient to negotiate for such properties.
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Why Is It Better to Invest in Property During the Winter Months?
When the above factors are examined, it can be said that the best time for property investment is the winter season. Other advantages of winter can be listed as follows:
- >>> Although the number of properties to be invested during this period is low, the ones for sale have a very high bargaining margin.
- >>> In this period, the number of people buying property for investment is very low. The low competition causes the prices to go down naturally. Moreover, if you invest in property in countries such as Latvia, you will also have a residence permit advantage.
- >>> It is very difficult to move in winter. That’s why people don’t want to change their houses. This situation leads to a decrease in demand and prices.
- >>> Christmas is a time when people’s feelings of goodwill increase. Property sellers may approach your demands more positively with the effect of Christmas.
- >>> As the calendar year is about to end, sellers may want to sell their houses as soon as possible to take advantage of tax benefits. For this, they can decrease the prices.
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The winter season is the most suitable period for property investments. However, if you cannot find what you want during this period, you can make your investments in the spring period too. In the period just after Easter, the property market starts to move slightly. Thus, your options increase. However, you should act as fast as possible and make your investments before the prices rise. If you are late, prices can rise significantly. So you miss the right time.
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Igors Krumins continues his activities as a commercial and international lawyer within the body of “Jurmala Invest”. He has more than 10 years of experience, especially in the investment sector, and has provided consultancy services to numerous companies with his legal expertise. He successfully completed his undergraduate studies at Baltic International Academy and graduate studies at Latvijas Universitate. Apart from his native Latvian language, he can also speak Russian and English fluently.