It looks to me like this info gives a great indication of when prices are at a peak and it's probably not a good time to buy. For example it says don't buy anywhere in 1989 which was spot on. Also not to buy in Sydney in 2003, Brisy in 2004, Perth in 2007 etc. The peaks are spot on.
However it doesn't seem to do as good a job with the time to buy? It says it was time to buy in Sydney and Melbourne in 1990, just 12 months after the peak? In reality, this was a bad time to buy. It was better to wait till 1997. It doesn't show that it was time to buy in Perth in 2003.
It shows that everywhere was great buying in 2009? It's too early yet to say if that is correct so the answer lies in the years ahead.
Is that what others see? Or am I reading it all wrong?
Hi topcropper,
You are spot on actually!
Rental Reality is all about not overpaying for an asset. Nobody can tell the future.
What I am suggesting is that the heatmaps will give an accurate indication as to when to buy, within Rental Reality value and then it is anyone's guess as to how long it might take the market to trend up and create equity.
The purchaser who sooner acquires an asset at good value, will always be better placed to make equity gains compared to an investor who first waits to see the growth occurring!
The time it takes to accrue the equity is unknown, but time in the market from a good start will always leave the investor better placed.
Regards,
Steve