Recently I’ve come across many investors who have stopped investing in real estate since the current real estate market is seemingly too high and the bubble should burst anytime soon.
Though I can understand where they are coming from - in no way can I agree to this. Taking part in the real estate business for the last 30 years as a real estate agent, broker and investor surviving several markets ups and downs I can tell you first hand that my experience proves that a good deal can be found in any given market.
Here Is A Quick Change In Perspective
Not all of the markets are the same and all markets are polarized into both macro and micro economics. While one market goes down, the others could go upwards. Is the market in Texas same like New York? Or even, is the market in Sacramento same like Los Angeles even though they are both Californian cities? NO, they have different industries, different socio-economy situations, different price points and values. So you can’t look at them in the same way.
Change Your Strategy. Are you investing for long term passive income or fix and flip? Are you looking for a fast exit and a quick return or you’re looking for cash flow and most tax benefits available? Some strategies are more prevalent in certain places while they won’t apply at all in others.
A savvy investor should be very dynamic in order to find an opportunity in any market, whether it’s up or down, you can always find a good deal. Yet, it’s true that after a market crash like the one we’ve experienced in 2008. Then there were many more opportunities and bargain deal than now, but the question is are you going to wait until the market will crash again? Can you tell how long it’s going to take? Are you going to sit on the fence and leave your money at the bank for almost zero interest?
The deals you’re looking are not necessarily situated where you live, so you have to do some research and market analysis throughout the country in order to find them.
Always consider the various alternatives offered in the market, and take the best alternative you could find. But sitting on the fence for too long will eventually end up wasting your money. My life experience is showing that people tend to spend cash available on things that depreciate over time rather than appreciate.
Don’t worry about what people have to say about the market, some of them will find a reason why not to buy in any given market. Our savvy investors keep investing in real estate regardless of the market conditions because they know what they’re looking for and if a property meets their criteria then they don’t hesitate even a bit!