Timing the Market vs. Time in the Market

A contentious topic that has left property experts in disagreement, timing the market versus time in the market is a debatable area in deciding which method is the better way to invest in property.

First of all, let’s be very clear of the definition. Timing the market refers to an investor getting into the market cycle when it’s at the bottom of the cycle. This enable the investor to ride the capital growth wave when the market moves. On the other hand, time in the market refers to a “buy and hold” strategy meaning given enough time, the property price will rise and the investor will be able to benefit from both the capital growth and rental yield.

Sometimes it feels like a moot point but in the November 2016 Issue of Australian Property Investor Magazine, property experts: Ben Kingsley and John Lindeman debate on this matter and whether it is better for investors to go for a “longer-term [property] to deliver them solid to strong capital growth over a period of 15 years or more”, or for an investor to believe “that acting now will deliver them the solid to strong capital over the short term.” As well as discussing the advantages and disadvantages of both, this article also reveals which method Ben and John both personally prefer to use when investing in property; and which method they think is best suited to which type of investor depending on their circumstances.

To find out more from this month’s great debate, please read on.