Brisbane Land for Sale: Why You Should Buy When the Market Is Down
Land costs are cheaper in the country than in the city, that’s a given. The further the land is from the city, the more affordable the acreage will be. Of course, if you want to stay connected to the city, you don’t want the land you intend to purchase to stray too far, for convenience’s sake. But what if land that’s not too close and not too far from the city is somehow above your budget? Here’s a little tip from your Brisbane land for sale professionals–you should wait to buy when the market is down.
Successful land developers know that it’s simply a mistake to buy real estate when the market is near or at its peak. On the contrary, they wait when the market experiences a downturn before they start scooping up properties, because they understand that inevitably, the market always rises again.
If this isn’t your first time buying acreage, perhaps you’ve seen residential land properties for sale during a market downturn that were being sold well below value. Didn’t you wish you had the cash back then? Successful developers know to prepare for such events and have enough money saved just in case. In a downmarket, you get less buyer competition, desperate sellers, and plenty of inventory, all contributing to even lower prices for you.
Baron Rothschild, an 18th century British nobleman who made a fortune buying land during the panic that followed the Battle of Waterloo, is credited for the brutally truthful statement: “Buy when there’s blood in the streets.” The belief behind this statement is that the worse the market, the better the opportunities are for a land buyer to profit. This is what’s called contrarian investing.
As the name suggests, a contrarian investor goes against the crowd. They understand that bad times make for good buys, so if they sense a downturn and “smell blood in the streets” so to speak, they prepare ahead of time by limiting their spending, establishing low-interest lines of credits, liquidating unused assets, and stockpiling on cash to make sure they are ready to make huge property investments. When the downturn eventually arrives, they’re ready to purchase land that banks and other property owners are only too eager to move.
Land is a long-term and boring investment, and you need to keep a close eye on the market at all times. On that note, it pays to partner with a reliable Brisbane land for sale firm that can monitor the market for you and help you time the best investments to make with your money.
Sources:
Buy When There’s Blood in the Streets, investopedia.com
5 things to know before buying land, marketwatch.com
