Should I time the market to buy real estate?
Do you think it's smart to use the 'wait and see' approach right now?
...are the types of questions I am getting most these days.
My take:👇🧵
Yes, mortgage rates are high and the prices have not come down enough just yet.
But.....
if it’s a long-term investment, fluctuations in the market shouldn’t matter.
Do the cash flow analysis. If it's a good deal then it's a good deal.
And a good deal to me = good cash flow.
If you buy now with good cash flow, it won’t matter if next year the price doubles or halves.
You’ll still have your cash flow income.
Yes, the rents might decrease with a downturn.
That’s why the margins and cash reserves need to be good enough to mitigate.
People feel the market pull & get in trouble when they spread it too thin and do not have the reserves or buy for appreciation.
If you are buying for the long term, with long-term fixed-rate loans, with a cash flow buffer, and have cash reserves.
You have neutralized a lot of the risk.
Yes, there’s always going to be some risk with any investment.
But guess what life is risky!
No one is getting out alive 😎
Hope this helps.
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