Everyone has heard this saying before. It sounds logical, it makes sense, but for some reason it can be so hard to pull the trigger. For the savvy real estate investor, it’s a game, and at the end of the day it’s about turning a profit and not losing one.
The days of flipping are behind us. Four years ago one could go out, easily get a loan, buy a house, do a little work to it, and sell several months later for a profit. Times have changed. This doesn’t mean that real estate is a bad investment, it just means that you have to think long term.
Anyone who pays any attention to todays real estate market knows prices have been reduced in many areas since the days of the real estate boom. Sellers are willing to negotiate and ready to make you a deal. With this being said….buy low, sell high.
So, to my point. The low factor is there, it’s a buyers market, interest rates are low. Now is the time to buy. For the investor the trick is to think long term. The real estate market is cyclical, it will come back.
My suggestion is to buy a property within your means. Ask yourself, can I afford the monthly mortgage payment without feeling stressed. Can I afford the mortgage payment if I am unable to find a renter for several months. Once you identify this property, find a reasonable loan term (make sure you are familiar with the loan you get). Now, you have purchased your property, find a renter. Some people will want to find a long term renter and some will want to due weekly rentals and leave a few weeks a year for personal use. Either way, make sure you can afford the payments regardless. If you want be able to, don’t do it. Once you do this now just hold on to it. Long term is the key here, and those who are patient will profit.
What are you waiting for?