Re: Real Estate Market Timing
Finding any market bottom is one of the hardest things to attempt,if not next to IMPOSSIBLE to succed at
In the stock market ABC stock falls from $120 down to $90..down to $65..etc(obv. I am using an extreme example,and in this market it is ringing true)...but fundamentally the companies fundamentals,business model,industry product/demand,balance sheet financials,future outlook,etc...are still strong with no excuses to the drop,except following the WHOLE market direction down in general at the moment.Obviously keeping an eye out for any changes that can suddenly appear,and adjustments like any investment are ness
Ask Warren Buffet...he's done pretty good buying bargain basement stocks,where I GUARANTEE you he did not pick the exact entry bottom 50% of the time
These have made for the BEST buying opps in history IMO!
Now with regard to Real Estate:
Your in the market to buy a house the last 2 yrs ..and have seen houses drop from $650k...to $575...now down to the "firesale" price of $499..whatever
If you do your homework/research the area,demographics,job market,are looking at a long term 5+ years viewpoint,house for sale inventory/to sell ratio,etc.you can find absolute STEALS that just might not be there the next few years
In real estate as long as you are take a low-interest FIXED rate low fee 1st mortgage,and plan to live their as a primary residence,I think you wont regret it 10 yrs from now,...and thats the same if you buy that ABC stock with the same conviction and long term view
IMHO...I would rather be purchasing RE now over Stocks anyway with the shape the Stock Market looks right now ,without hesitation
The biggest flaw most new investors(and ALL bad ones) do...is they TRY and wait for markets to eventually find its exact bottom and be heros(No ONE knows when that is).
They then miss the boat and pay 25%+ more for a property/stock....AFTER EVERYONE dips their toe in the water first,then chase them an the upswing ala. the 2000 NAZ rise/bust and now the recent 1998-2006 parabolic R/E rise..then look back and say woulda' coulda' shoulda'
The ole'buy LOW sell HIGH is an age old adage that still works quite well.
Timing markets however...is a tough game
SF [img]/images/graemlins/cool.gif[/img]
*** I have some younger friends who I BEGGED to start buying RE after 9-11 when rates fell to all-time lows a few years back...but they waited until late 2005-06 to buy and are kicking themselves now with an overpriced house,a larger BS adjustable mortgage and very low equity,and a HORRIBLE sellers market to liquidate if forced to [img]/images/graemlins/frown.gif[/img]
|