The Best Time To Buy Real Estate: 3 Reasons It’s Always a Good Investment
TL;DR - It’s always better to have time in the market versus timing the market. Real estate is always a great investment because it’s always in demand, you get rental income cash flow, and it’s forever appreciating.
“Timing is everything”.
That’s what we’re told from a young age.
And it’s solid advice!
It teaches you to be cautious. Pick your spots. Know when to make a move and when not to.
But in regards to investing, often, this backfires on us.
We think we’re being smart, but we’re really losing all the potential gains we could have had if we took action immediately.
So the question is — when is the best time to invest in real estate?
It’s Probably Right Now
You can wait for the real estate market to dip…
And wait…
And wait…
Until eventually, the amount of money you’ve “saved” has been overcome by the profit you could’ve had already.
Whether you’re buying a property for $300,000 at a 4% interest rate or $245,000 at a 6% interest rate, your total payments will be similar.
And that’s the case right now.
Interest rates have been low in the past year and change. This has led to high demand and inflated pricing.
Now, interest rates are rising. So we’ll see less demand and prices will follow suit.
That being said — it is a good idea to test out your desired market.
Search for properties that fit your criteria, see what they typically sell for, find out facts about the local area, etc.
This will help you make an informed decision when you find a property that you know is a good deal.
But once you have that good deal…
The one you know will lead to great cash flow and even appreciation…
You shouldn’t let it pass you by. Not if you have the funds and the time to make it work.
Time in the market is almost always better than time timing the market.
3 Reasons Real Estate Is Always a Great Investment
There are plenty of reasons why real estate is always a top-shelf investment, but three stick out in particular.
It's Always In Demand
People will always need places to live.
As the population grows, the demand for housing will continue to increase. This means that there will always be a market for buying and selling real estate.
And while there are spurts where real estate is less in demand, it’ll always be something people are looking to buy.
In fact, 91% of Americans would like to own at least one home in their lifetime.
How’s that for assurance?
Rental Income Cash Flow
If you purchase a property and rent it out, you’ll receive monthly rental income.
This can provide a great source of cash flow. And as long as you keep the property in good condition, your tenants will be happy to stay for years to come.
You can even hire a property manager to make this cash flow 99% passive.
As we recently discussed in our financial independence piece, this passive income sets you up for a great financial future.
With passive income, you can live your dream life.
Wouldn’t that be awesome?
Rising Appreciation
Over time, real estate typically appreciates in value.
If you hold your property for less than a year, you can expect a 4.1% appreciation rate. Now, if you keep it for 7-10 years, you can expect a 46.6% appreciation rate.
That means that the longer you have your real estate investment, the more you stand to gain.
This is due to a number of factors, such as inflation, the local economy, and population growth.
If you decide to sell your property, appreciation can lead to substantial profit. Which means more money in your pocket to use how you see fit.
Whether you use that for your next investment, your retirement, your kid’s college, or just to treat yourself — you’ll get to bear the fruits of your labor.
Don’t Waste Time
Do your due diligence. That’s the smart thing to do.
But once you have a perfect deal staring you in the eyes, don’t give it up.
Because if you do, someone else will snatch it up. And then you’ll be out of all that sweet passive income. Not to mention the huge appreciation rate.
Remember — it’s better to have time in the market versus waiting on the sidelines.
Real estate is an amazing investment tool that allows you to reach financial independence that much quicker.
It helps you reach an income level that you’d only dreamed about before.
The only thing stopping you from living the life you want is you.
You’re one investment away.
Happy hunting!
How We Can Help You
Does investing in real estate sound intriguing to you? Would you like to learn more? We’d love to be of value!
At Undoor, we pride ourselves on teaching new and experienced investors how to maximize their gains with minimal stress. Our goal is to help you fall in love with real estate and real estate investing. What we’re most passionate about is maximizing investment gains for people like you.
Do you want to get key insights and advice that’ll help you get ahead of the game? Don’t hesitate to contact us for any and all real estate wants or needs.