The real estate market has hit bottom. Prices are being dropped on everything. However this is the best time to be a real estate investor. When you are investing in real estatethe market doesn?t matter as much as the price you can buy property at. If you are holding long term then you have to accept the market fluctuations. But if you can buy at the lower end of the cycle that is the best time to buy. The trick is knowing when that is.
When the real estate market is experiencing a downturn it is the best time to buy. Just check the foreclosure lists and auctions. You can pick and choose and buy normally below market value. However, keep an eye on your monthly bottom line. In other words make sure your rental income (from your new investment) equals or exceeds your outgoing including mortgage repayments. If you have other income you may be able to stand an extra $100 or more per month to top up the mortgage but try to avoid it. You will sleep far better at night knowing that the mortgage payments are taken care of.
If the property market is rising you can be confident that the value of your investment is increasing. That is where your profit is and you should be able to sell if necessary. However, that was a few years ago when the market was more positive but now the reality is that the market has dropped and you need to be able to hold long term without any worries. It may take a few years before we hit healthy real estate selling conditions again, let alone a property boom.
Several investors that started during the "boom" now have to change how they are thinking about investing. This is the time when we separate "those who can from those who got lucky and made a few bucks". Now is when the long term hold plans must start becoming the focus. This is a business. You need to do the math. Will your income from your investment cover the expenses/new mortgage?
Taking the current market woes in to consideration, the fact that now is a great time to buy and hold for the long term, goes without saying. Due diligence is the key for the next few years. Now is the time to look at buying for long term gains.
When the real estate market is experiencing a downturn it is the best time to buy. Just check the foreclosure lists and auctions. You can pick and choose and buy normally below market value. However, keep an eye on your monthly bottom line. In other words make sure your rental income (from your new investment) equals or exceeds your outgoing including mortgage repayments. If you have other income you may be able to stand an extra $100 or more per month to top up the mortgage but try to avoid it. You will sleep far better at night knowing that the mortgage payments are taken care of.
If the property market is rising you can be confident that the value of your investment is increasing. That is where your profit is and you should be able to sell if necessary. However, that was a few years ago when the market was more positive but now the reality is that the market has dropped and you need to be able to hold long term without any worries. It may take a few years before we hit healthy real estate selling conditions again, let alone a property boom.
Several investors that started during the "boom" now have to change how they are thinking about investing. This is the time when we separate "those who can from those who got lucky and made a few bucks". Now is when the long term hold plans must start becoming the focus. This is a business. You need to do the math. Will your income from your investment cover the expenses/new mortgage?
Taking the current market woes in to consideration, the fact that now is a great time to buy and hold for the long term, goes without saying. Due diligence is the key for the next few years. Now is the time to look at buying for long term gains.
