The Best Time To Buy Real Estate Is In A Down Market
Topics: real estate purchase, real estate investing, buying in a down market
For years, the real estate market was on an upward spiral, with housing prices rising higher and higher. Now prices must come back down in order to create a balance in the property market and with a surplus of homes on the market, that means desperate sellers.
Anyone interested in buying real estate for investment should definitely consider buying in a down market. The real estate market is cyclical and always has been. It goes up for a few years, then down and then back up. By purchasing your investment property at an all time low, you can then sell it when the market is high again and earn back quite a bit more than you paid, in some cases two or three times more!
The trick to investment buying is to get in when the prices are as low as possible. This can be difficult to determine, but with some good research skills, you can get an idea of about how long it takes for the real estate market to hit bottom before it begins to come back up again. Not to mention, if you are keeping close tabs on things, you’ll see when it begins to rise and this would be the second best time to buy, before prices skyrocket again.
However, the best time to buy real estate is when the market is still going down. A falling market means desperate sellers who are willing to accept lower asking prices than they would consider otherwise. You can often negotiate far better prices when the market is down and then you simply need to sit on your investment for a few years until the prices go back up. This isn’t always a quick process. It may take a decade for the market to turn in your favor, so you will need to be ready to survive without that investment money for a long period of time.
Once the market turns, however, you are back in the game and can enjoy a tidy profit. Since the real estate market is constantly going up and down, if you buy on a down market, you can pretty much guarantee that it will go back up and you’ll be able to sell for a profit. However, if you buy when prices are high, you are far more likely to lose money on your investment.
This requires you to keep a very close eye on the real estate market if you want to be able to buy at just the right time. The perfect point to purchase real estate is right before the prices hit rock bottom, but before they start to go back up.
Buying real estate in a down market is a technique that works very well for many real estate investors. You can imitate their success by imitating their techniques and buying when the prices are low, then sell when they go back up. Just make sure you have the ability to stay afloat for the months or years that it may require for the market to turn.
This article was written by Seb Frey, a Real Estate Broker and Realtor in Capitola, California (Santa Cruz County). Seb runs the county’s most-complete Real Estate web site, SantaCruzHomeBroker.com. Seb is Fluent in Spanish, and delights in working with with buyers from all walks of life.
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