When is the best time to buy?

You know how the typical realtors' ad runs right?

"The best time to buy is NOW."

"There will never be a better time."

"Interest rates are at their lowest in 30 years."

Etc etc.

So this recent ad in our local Domain paper was refreshing.

According to LJ Hooker, a local realtor, the best time to buy is when you have the financial capability to do so.

What they didn't say is that it's not just about being able to buy, it's also about being able to hold on to the property long enough to see capital growth and/or positive cashflow.

Property investment is associated with a number of holding costs beyond the interest that you pay on the loan. Anyone who is planning to jump on the property bandwagon needs to know something about:

• tax laws,
  
• depreciation,
  
• positive gearing vs. positive cashflow,
  
• the pros and cons of negative gearing,
  
• how to structure an investment (your name, my name, our names, a company name?),
• how to find a good tax accountant,
  
• how to choose the right loan product...

As copywriter Bob Bly says, "School's never out"!