Are You Investing Today With Rates Where They Are?

Question

Real Estate Investors say the best time to buy is now, does this hold true even today? we are in unprecedented times where properties are at an all time high, taxes are high, everything is high, rates are high, is it really a good time to buy now?

Nathan Gesner · Answer

Whoever told you that is a complete idiot, a liar, or a salesman. But I repeat myself.

Warren Buffet says you should be greedy when others are fearful and be fearful when others are greedy. Look at what's been happening the past two years: out-of-state investors are buying up properties and they are waiving inspections, appraisals, and other safeguards. It's a literal feeding frenzy, primarily fueled by amateur investors.

People were fearful 10 years ago. That was the best time to buy. Even three years ago was pretty good with a decent amount of cashflowing inventory around the country. Today it's a feeding frenzy and that indicates something is wrong.

There are still deals out there and I encourage you to continue saving and watching, but there's no way this is the "best time" to buy real estate.

Joel Case · Answer

If the numbers work, the numbers work. I just bought, but I also bought the rate down as much as I could. Rates are still historically low, prices are maintaining in my area, but I am seeing quite a bit of deals fall through including the deal I just closed.

Brock Mogensen · Answer

My opinion is there are always good deals to buy no matter what state of the market we are in. The caveat is you need to adjust your assumptions accordingly. Currently it is very hard to make deals work, when you are running conservative proformas. But there are still deals out there that make sense..

Marcus Auerbach · Answer

Clearly not, 10 years ago would have been better. But short of a time machine your 2 choices are now or later. I have not bought anything in the 1st half of this year (the longest I have ever gone in the last 10 years without a purchase), our market was just too crazy, but that has changed.

The numbers may look skinny right now (for Milwaukee standards), but as real estate goes a few years later rants will have gone up, rates probably come down again and the bottom line look much different.

And I am long on cash and really need more depreciation, so that puts me in a spot where I can either buy an expensive property at rates that are higher than I like or give my money to the IRS and to inflation.

Are You Investing Today With Rates Where They Are?

Are You Investing Today With Rates Where They Are?

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