“Be Fearful When Others Are Greedy and Be Greedy When Others Are Fearful’
~ Warren Buffet
This quote fits in with how the state of the real estate market is going. Right now, home prices are lower and the interest rates are higher. This is causing uncertainty and some people will not buy. You can be certain in this, prices and interest rates will continue to go up and down. No market situation is forever. People will always need a roof over their heads, that is FOREVER!
Right now is the time to invest in real estate. Rental properties are at a lower price because the market is down. Two things that are in constant motion are the real estate market and the interest rates. There was a house bought back in March for $800k when interest rates were about 3.25%. A property on the same street sold on Tuesday for $650k, and the interest rate is somewhere around 4.25%. That’s the same price as a comparable on that street that sold in October 2020 when interest rates were about 2%.
Smart Investors buy low and sell high. That is exactly what will happen for people who take action and buy now. It is better to buy right now as you can get into the market while prices are lower. Newton’s third law of motion states that ‘what goes up must come down’. This is a very true statement for real estate prices and rates. Soon enough the prices will rebound and go up and you will have earned money in the form of equity.
For the past 10 years, we have helped many First Time Investors get into the market. We have helped others grow and diversify their investment portfolios. A wise investor knows that it is not about timing the market but time in the market. Now is the time to buy and then ride the curve back up.
The best time to plant a tree is 20 years ago and the next best time is today. Well this statement is also true for investing in real estate. Don’t fear the interest rates! This is a business write off and mortgage payments haven’t changed since February when rates were low and prices were high. The difference now is you’re buying when prices are low and they will go back up.
If now is the time for you to buy a rental property and start collecting rent, then connect with us. Let’s have a conversation about your specific situation. We will connect you with an investment minded Mortgage Broker. The first step in your investment journey is knowing your financial situation.
Don’t wait to buy real estate, buy real estate and wait.
