hey "no brainer", if someone only owns their own place where they stay, I agree no sense in selling simply to try and catch the bottom, but if someone holds an investment property, and is pretty sure prices will fall by at least 10% and maybe more, why not sell here and buy again 10% lower?
even if prices end up falling much more, say from -10% to -50%, you'd still be better off having sold and bought back
Because when prices fall 10% you will convince yourself that they will fall even lower. When they fall another 5% , you will get more confident as your prediction had proven right and will move the target by another 5%. Then the market starts making a u-turn. After some denial you finally buy back at the same price (lose money on the stamp duty, agent fees) or higher price. End result you would have been better off staying put.
This has happened to many people and some end up being priced out of the property market forever trying to time the market. The property market does not move as slowly as some may think. The recent bearish sentiments came on extremely quickly when majority least expected it. So likewise sentiments may improve just as quickly and catch many would be investors off-guard.
I have 25 years experience of hit and run investments in the stock market and based on my experience such a tactic never pays off for the majority in the LONG RUN.
Be a long term investor, invest in good properties, renew your properties as they get old, make sure you have enough to pay for installments even if bad times hit you, ignore the short term movements - and after 20 years you will be glad that you adopted this investment approach.
