Related Posts
Anyone hiring for a Marketing Analyst position?
Bowl Leader
Hold or Sell?
Enthusiast
Has anyone used LAS Links? What can I expect?
Bowl Leader
Additional Posts in The Real Estate Bowl
Subject Expert
Visual Storyteller
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
If you're waiting for a “safe” time, you’re not an investor—you’re a spectator. Wealth gets built by people willing to make moves when everyone else is frozen. The market rewards action, not perfection.
So I bought in 2009 when I thought the market had crashed. The market had not yet crashed and seen the bottom… but it did about 6 months after. I was very young and wasn’t sure if I had made a mistake. I had used up my savings to purchase. It was the best decision I have ever made and has given me so many other opportunities. It is now a rental property and investment income for me. Stop second guessing yourself. If you plan to be in that area for a few years, go for it. If you have to unexpectedly leave, you can rent it out. The worse thing that can happen is the bank takes it back…and what have you really lost if you compare it to renting during the same time. You got this! Best wishes
Subject Expert
Are you buying for your primary residence? Or for an investment property? I think that drastically changes the decision process
#1 rule in finance and real estate is do not attempt to time the market. Safety is not defined by the market, but your position in response to various market conditions. Factors to determine your position include what % a mortgage would represent of your gross monthly income, the stability of your income, your savings reserves, ability to absorb potential increases to your homeownership costs (insurance, property tax, maintenance), how much your rent is vs how much your mortgage payment will be, how long are you planning to live in the home, chances of your rent increasing and by how much, what your overall debt situation is, your other financial goals (retirement, kids), ect.
Real estate is not really an investment unless you are doing some sort of arbitrage since stocks perform way better and are more liquid. If you are a first time buyer just save up as much as you can and purchase when you are able to.
Subject Expert
There’s a lot of scenarios where real estate outperforms the stock market without arbitrage. In fact, arbitrage loses a lot of the tax benefits that real estate inherently has
Yeah provide more context. Is this going to be primary home or investment property? What are the terms of the deal you got in mind, etc.
At end of day, need to make sure you are paying a good number for the building and have enough cash flow to cover a future changes. If you’re still cash flowing, then make the move stop worrying about crashes. For me, I paid a premium but I had very little cash in deal and when my taxes significantly went up, I was still able to still cash flow. It all depends on where you are and if you are depending on the money to live.
I made the move since I have plenty of time and not relying on the money and stashing money to reinvest in future fixtures
Your best security against losing money on an investment is to buy a multi-family property. Such as a duplex or a quadplex. Start small and then work your way up to a larger complex, you could even buy a piece of property and build multi-family units depending on your zoning. Multiple doors are always a better investment than a single family home.
Has the market ever dropped and stayed there?? If you buy and it drops, you just keep holding... I don't think the people who waited out the crash of 2008 were crying sad tears when they sold in 2020.
Husband bought a place in south Brooklyn for dirt cheap during the crash, has appreciated 3 fold since. We also got a place in manhattan during covid and it’s appreciated little by little. One is between a vacation home and investment property, the other a primary residence. It works for us but both opportunities were hard to come by and market driven (lower mortgage rates), we wouldn’t have been able to afford otherwise.
“When there’s blood in the streets, buy real estate”
Buy at the top? Are you in Austin, Dallas, Miami, or Tampa? If not you are probably not buying at the top (probably not in those markets either). Also, do prices really drop in a recession? The great recession ended in 2009, prices bottomed out in 2012. If you can afford it, get into a property (if you want one, not because some guy says to do so). Economics is about supply and demand, and the fact is that since 2006 we have not built many homes (almost 1/4 of the homes needed in a regular market). And, since that time the population has just increased, meaning demand has risen on a stable supply curve (this means prices rise). Even if a recession hits it will most likely be a correction and not last more than a few quarters. This means the price might dip in the short term, but it will not change the fact that people want to move here and homes are not being built. Increased demand, stable supply (which again means prices will increase).
Your job might be more important than your savings! The way these companies are laying off. If you feel pretty secure. Go for it. Good luck! 🍀
You could also invest as a Passive Investor and not hsve to manage day-to-day operations. Just be sure to do your due diligence on the property and the operator.