Should I buy? Should I hold? Should I sell? Three of the questions real investors commonly ask themselves. They job relies on what is happening to the market and what investors are doing especially nowadays with the world in economic meltdown.

Some analysts say to expect a 40 per cent fall in property prices in the forthcoming years, as the fallout eventually. While others claim housing shortage, when combined with swift and evasive action from a government with overabundance of protection packages will in some way protect us from at least a fall in value – this is to be watched out for, we really don’t know if it will be successful.

Just to be safe, let’s take neither side and settle between. So, if you are in the market, or want to get into this market, here are some pointers to ensure that all goes well for you.

1. Back to basics

Now is not the time to buy a villa by the sea or flash apartment in the inner-city condo. Properties at the romantic end of the market always suffer first, and those who own them are always the first to offload them, often at prices lower than they paid. This makes for a falling market, and one you don’t want to be in.

+ Basic homes in the lower third of the market always retain a buffer in their values. More people fall into this market as the cost of buying rises and during periods of unstable interest rates.
+ These types of properties are more attractive for both owner-occupiers and renters. These factors go some way to insulating the values against too much damage.
+ These properties cost less.

2. Set short-term leases

With housing affordability at an all-time low, rents are feeling the pressure. In many of the more populated areas, rents are rising on an almost monthly basis.

+ Respond to this market increase by increasing your own rent. However, you won’t be able to do this if you lock in a tenant for the long term.
+ The number of people looking to rent is increasing, which means there are going to be a lot of ‘good’ tenants. Set your leases at six months, or 12 months by building in an increase at the six-month mark. This way you will keep up with market rent and build in the increased capacity to repay your debt.

3. Increase your search area and consider a greater number of properties

There are dozens of good areas in which to buy in the coming months and years. Now is a prime opportunity to negotiate well.

+ When searching for your next purchase, search in a number of areas and select six or so that you are prepared to buy. This gives you leverage to negotiate without emotion.
+ Take your time and always wait before counter offering. This will increase the chances of finding a vendor with more reason to sell.

4. Research

In the past years, you could buy property anywhere and be almost sure of doing well.  These days only astute buyers will acquire the properties most likely to withstand the years ahead. A commercial approach to buying is going to separate successful investors from the unsuccessful ones.

5. Finally, be careful

+ Plan for interest rate rises, even as we are experiencing cuts.
+ Buy property today which has the greatest chance of high rental yield and short term increases in rent returns, rather than for growth. You will have to wait some years for any real growth to occur anywhere.
+ Be patient. Now is not the time to panic. The world recovered last time and it will recover again.  Times like these are the times when most wealth is made by those who can bear the battering.