I was reading a chapter on property investment in Hierarchy of Money Skills by Peter Yee, in which he explained there are four property seasons – Summer, Autumn, Winter and Spring. And I feel it’s a good thing to share with you.
The Four Property Seasons
Summer = property boom cycle
Autumn = transition time from Summer to Winter.
Winter = property bust cycle.
Spring = transition time from Winter to Summer.
To illustrate how the four property seasons relate to each other, I designed the above quadrant with a circling wheel showing the cycle of the four property seasons.
According to the author, the best time to sell is Summer (boom cycle) and the best time to buy is Winter (bust cycle). During Spring, it is advisable to hold until Summer because the capital gain can increase the owner’s net worth.
Investors can make money from under construction developments during Winter or Spring seasons because completion takes 3 to 4 years. When the development is completed, the season may have changed to Summer.
Do you think we are in the Winter season now and it’s the best time to buy a property?
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