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Updated about 1 month ago, 10/16/2024
is now a good time to buy investment real estate?
With all the uncertainty going on with the world, with the wars in the middle east, longshoremen strikes, election in November, and potential for stock market and housing market crashes, should I hold off on purchasing real estate until the world is more "stable"?
I will be the contrarian. Is it a good time is relative.
It is the worse time in many respects since 2010. Two studies have shown rent to value ratios have never been worse implying cash flow on the average purchase is at an all time worse. Recently the rates were the highest for this century. Further legislation continues to impact residential RE investments. The residential prices nationally are at an all time high. Relative to the past 15 years, it is a poor time to buy residential buy and hold.
However …
- even with this being relatively a poor time to Purchase residential RE, I suspect a 10 year hold will produce better return than most other investment options
- there are a lot of ways to invest in RE. There is a very small chance that they all would be poor at the same time.
- there are numerous ways to achieve sweat equity from boring but true rehabs, to development, to various localized sophisticated options.
- there are various finance options that can help produce better return.
- even if many buy n holds are not great in the near term, all you need to do is find one that works for you.
In summary I see deals close virtually daily that I believe only work well with a lot of patience (more patience than I have). However I also regularly see investors finding deals that work for them. I will add there are some creative and skilled RD investors.
Good luck
- Real Estate Broker
- Minneapolis, MN
- 5,113
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Quote from @Isaura Orellana:
The one thing you and the rest of us have working in our favor is the market has never not bounced back. It always ends up more lucrative than ever before.....
Ok, so either this is a joke or was there like some meeting before hand, a "hey, heres how we really gas-light em" kinda thing????
Your supposedly in Detroit! Come on, COME ON!
Ok, how about giant swaths of coal and steal country? Ever hear of a little known person called Senator Fetterman? His entire platform to politics, becoming a Mayor, than Senator, was in representing DEAD towns, dead and near dead markets who lost there industry basis and have been eviscerated and NOT come back.
Over 90% of the textile industry from US has been offshored. Steal Industry, auto manufacturing, the facilitating things to these like coal mining, the decapitation of these industries in the US has left a trail of devastated towns and collapsed markets who have NOT come back and have no prospects of ever coming back to there former glory as the "thing" that put them there, is gone.
The Gold Rush, there is another one. Laundry list of boom towns that are now, at best, ghost towns, if not just a debris field.
See Isaura this is why pretending feelings can replace facts, will be the downfall of everything. It's literally the "Idiocracy" road map.
There is a long LONG list of towns, neighborhoods, markets that have had a downfall and NEVER recovered. So yeah, not only can it happen, it DOES happen, and LOOOOOOONG has happened. Every time a technology shift happens, and evolution occurs, an efficiency breakthrough happens, a SHIFT occurs, things change. Markets built on the old wither, and new are built for the new.
- James Hamling
You will never find a so-called "stable" time. Find a good deal and buy!
Waiting for the “perfect” time to invest means you’re missing out on potential opportunities. Real estate has a vast array of different strategies, instead of timing the market, consider your goals, what is available to you, and what makes sense both in the current market cycle, but also long-term. Let me know if you want to connect, I’m always willing to share how to find good deals, even during times like these.
The things that come to those who wait, are the things that are left behind, by those that got there first.
Always be on the lookout for a good deal as you'll find them at anytime. Let's just say this would no be a good time to quit your day job and go real estate investing full time. Because of the things you bring up and because it is very competitive out there, I haven't bought in 2 years. But I have been upgrading and developing the properties I have.