There’s a bunch of chatter around about how the real estate market is rebounding, and how there has never been a better time to buy, but it’s misguided. What investors need to pay attention to is not whether it’s the right time to buy, or what the market is going to do; but rather what works in today’s market. Once you have been able to identify what is working, then you can incorporate that into a brand new investment business plan or adjust your old one and get going.
What I do like about the discussion of whether it is the right time to buy is the desire to take action, to get moving and get into the market again. That bodes well for the confidence in the industry generally, though it also indicates a bit of uncertainty. This is where the fence sitting comes into play.
Why there is never a ‘right time’ to buy real estate
The perfect time to buy real estate will be different for a whole range of different people. To start with, there is no real point at which the real estate market bottoms out and prices start heading north again. Or rather, there is – but it’s not apparent when that is until we can sit back with a nice drink and say ‘Ahhh yes, that was it’ and then remark on how we missed it/made it.
If you have a solid real estate investment business plan then you will not need to worry about what the market is doing from day to day, because you have a solidly mapped out business plan that you adhere to. So that’s the first thing there is to say about the ‘right time’ to buy.
Secondly, the ‘right time’ to buy may well not be the same for you as it is for me. I might have very little capital to outlay and be reluctant to source too much finance as being too leveraged is not in my business plan. The next person though have be looking for cash flow properties and has planned to access finance wherever it is required – and has the team on board to make it happen.
You see, it’s the different styles of investing in real estate that will dictate the circumstances in which you will buy. You can’t let the market dictate your business decisions, or you will end up owning real estate you don’t want in areas you should not have bought. Establish and stick to your business plan and you won’t just be happier and more successful, you will always be in control, and know the best time and place to buy real estate properties that suit you and your purposes.