It would be ideal if the opportune time to invest in property aligned with market price reductions, but many investors have learned the hard way that the property market doesn’t typically operate in that manner.

The right time to buy is more about a specific situation and mindset than a fixed timeframe. It occurs when your budget, the market conditions, and property availability in your desired location come together to create a unique investment opportunity—tailored to you and you alone.

Hence, seasoned investors understand that the best time to buy is when YOU are ready. Keep your eyes and ears open, and be prepared to seize the opportunity. We explain why below.

The problem with waiting for a market correction

There’s a fundamental issue with waiting for a market correction that all prospective property buyers should be aware of—and it’s perfectly illustrated in the chart below.

From The Sydney Morning Herald. Click to view the interactive graph on their website.

The substantial gap between completed homes and population growth signifies a current shortage in property supply to meet demand.

With escalating construction costs, persistent challenges in the construction sector, an extremely low rental vacancy rate of only 1%, increasing renters transitioning to buyers, and rising interest rates posing challenges in pre-funding new developments, the gap between completed homes and population growth is unlikely to narrow in the foreseeable future.

The implications are significant for Australian property prices. Regardless of higher interest rates, it’s challenging to envision a significant decline in residential property prices in the foreseeable future. Given the pronounced undersupply of property, unlikely to be addressed in the short term, property prices are more likely to continue their upward trajectory in 2024.

Against this backdrop, waiting for a market correction to enter the market is unlikely to prove fruitful.

Buy investment property when your ducks are aligned

With a persistent undersupply of Australian residential property, now is not the time to adopt a defensive and cautious approach. Prospective buyers are more likely to succeed by purchasing investment property when their circumstances align for doing so.

In other words, the best time to act is when you have the necessary funding and budget to buy an investment property that aligns with your financial plan. The outlook for Australian residential property in 2024 appears promising at this point.

Explore Landen’s calculators to help you better understand your financial position and possible opportunities.