While property segment has been facing its dose of volatility, many have been confused about their property investment strategy. It has been tough to take a call on the timing of the investment as there are indications that property market is likely to be depressed in the next few quarters. While no one can predict the perfect scenario for an investment, it helps a great deal if you are aware of the situation. For instance, should you wait for a few more months or years for your property purchase or is it the right time for buying property?

Fresh buyers: the first property is always special to most of us and we wouldn't like to be caught on the wrong side with the dream home. Those who are still looking at their first property may be feeling happy that prices are stagnant but they have bad news on the loan front. The interest rate is no more in single digit and home loan rates have moved up to 12% level. While that is still lower than the 15-18% seen during 1995-1997, the loan is a burden because of the huge rise in property prices. Hence, fresh investors need to keep in mind the interest rate scenario and with the rates likely to remain high, buyers need higher negotiating skills.  That should not be challenging since property builders are in greater need of liquidity. While bigger developers are still unwilling to lower their prices by a huge margin, the mid-prized segment has already seen enough correction. For instance, old properties and investors who booked property with the hope of earning higher returns have been off-loading their investments in the last few months. Hence, those who have the patience will surely stand to land with a good deal as the supply side is likely to increase in the next one year. So keep your options open for the right property but make sure that your loan size is minimal as interest rate is likely to remain high at least for the next few months.

Investment buyers: till 2007, investments in property yielded annualised returns of over 50% and in some cases, returns were in three digits. The potential of higher returns, expectedly, brought more investors into the stream. Not only has this increased the supply but has also pushed down the prospects of rental income. The present financial crisis in global markets and high interest rates, have begun to make investors cough up more for their property investment. The falling rental incomes have only complicated matters. Hence, those who look at property as an investment option will have to have the patience to wait out the present crisis. Since supply has begun to exceed demand in certain pockets, wait for a good deal for your property investment. While choosing the property, go for the one which can give you good rental yield as this can take care of a portion of the repayment burden.  In fact, those looking at investing in second property can afford to buy more time as the yield from property has come down drastically in the last 6-9 months. Those who invest in their second property will have to take a long term call of at least five years to make handsome gains. Such investors should keep their loan component considerably small as it would not be financially viable because of high interest rates.