Align your strategies according to the property value cycle

Here’s an advice to property investors as the property market goes through its cycle: Prices, interest rates and valuation change as we go through the property cycle. You strategies should, too.

Ed Chan from the Property Observer outlines the 2 major parts of this cycle: the Growth and the Decline stage. It is crucial that investors have a clear understanding as to what phase they are at. During the Growth Stage, it is advised that the property’s potential is realized, and that loan strategies are considered to maximize cash flow. For the Decline Stage, property value is assessed by external factors, such as economic conditions which will have a direct effect on the value of your assets.

Knowing these two stages will give investors the ability to maximize profit value and minimize losses. Investors must have a flexible strategy and should be adaptive to changes.

Read more about this on the Property Observer website.