Buy Now or Pay Later? Timing Your Property Investment for Interest Rates Rises

With interest rates expected to continue rising in the short to medium term, it's natural for investors to hesitate and consider waiting for rates to drop again. History shows that the best time to buy is often while interest rates and uncertainty are at their highest. 

Leading Australian property expert and founder of buyer’s agency DDP Property, Zaki Ameer, says the key to smart investing is understanding market cycles and economic trends. 

"Interest rates are higher than last year and will probably go higher for a while. In these times, owners and other potential buyers get nervous. That’s when some of the best deals are made for savvy investors."

He believes the timing is crucial to avoid missing out on the most profitable investment opportunities in such a volatile landscape.

Lessons from the Covid and co

Ameer's insights draw on patterns from previous periods of uncertainty, including the recent COVID-19 crisis.

He says that people who bought in early 2020, during the height of the pandemic uncertainty, made the most money. As the rates reduced throughout the year, new investors inflated the prices, and the most lucrative opportunities disappeared.

 "They capitalised on a moment when everyone else was hesitating, much like the current climate with rising interest rates."

Smart decisions beat perfect conditions.

Ameer emphasises that waiting for the perfect moment to invest is rarely the most effective strategy. 

"By the time people realise the property market is at the bottom, prices have already started to rise again. Waiting for the interest rates to drop may result in missing out on opportunities that won’t be around again, or for years.”

And adds that property prices aren’t the only clever reason to consider an investment sooner rather than later.

“We have 400,000 migrants heading to Australia that will drive up demand for rentals. This could lead to increased rental yields even as interest rates rise."