Should I buy now ? Or should i wait for a market crash.

Question

I am In the process of looking to buy an investment property but I keep hearing the market will crash in the next 2 years. Is now a good time to buy an investment property to collect rent or should i wait for a crash ?

Anthony Wick · Answer

@James Narlis

The experts have predicted 10 of the last 3 downturns. Everybody should sit on the sidelines and just wait, and then I’ll be able to find deals a lot easier.

Like everybody said, a good deal is a good deal....in any market. The numbers will tell you what and when to buy.

Joe Villeneuve · Answer

They've been saying that for the past 10 years.  One of these years they will get it right, and THEN and only THEN, should you buy.  Trouble is, how will you know, that they know, that they finally got it right (they being the "experts" that is)?

...or, you could just buy based on the quality of the deal, which isn't impacted by the economic market (good or bad), now...or later,...when you find that deal(s).

A good deal is a good deal, regardless of the economic market.  That's one of the great things about REI.

Joe Villeneuve · Answer

I would agree, if you changed your statement slightly by replacing the words "hesitant and exceptionally cautious" with the words "educationally prepared".

Jay Hinrichs · Answer

since these post happen if not daily or weekly on this same subject.

couple notes.

1. if we are in a bad crash market correction etc.. financing will pull in their horns.. beginners will find it quite difficult to get loans

2. if you have cash then your fine.

next recession might not involve real estate as much as we think..

Jacob Sampson · Answer

IMO we are closer to the top of a market than the bottom or even the middle.  With that in mind, if I were a new investor I would be hesitant and exceptionally cautious.  Because as a newbie I am most likely to make mistakes and I don't have the history to recognize great deals vs overpriced deals.

All that being said, I'm still going to pull the trigger on any great deal I find.

John Kaspar · Answer

The "crash" is always around the corner, based on professionals, who are great at clickbait and calculations that are missing certain information.

Nathan Patterson · Answer

I would say to do your due diligence & BUY BELOW MARKET VALUE.  To help with any crash that may be coming.  But, also, don't try to time the market.  Better to get the experience now then try to time the market & end up waiting 10+ years

Andrew Syrios · Answer

That last point is definitely true. People tend to prepare against the same thing happening again but it never happens the same way. In war, there's the saying that you don't want to fight the last war. I mean, there were cavalry charges at the beginning of the World War I and the Maginot Line, while perfectly designed for the last day of the first world war was all but useless for the first day of the second. As I noted for the 2001 recession, real estate didn't even go down (which should have been a red flag circa 2005-2006). Who knows when, how bad and which sectors will be affected most during the next.

Joe Villeneuve · Answer

I wrote this on a similar topic, and I thought it fit here too...with a slight modification:

A REI was talking to a car salesman about buying a new car when they looked up to see a flock of birds circling.

The REI said to the salesman, "It looks like that one is...OH Sh#&.  That bird is coming right at us".

"No way", said the Salesman,  "That bird is aiming for that car you were thinking of buying.  I know this because it has been doing it for the past 10 years...but hasn't hit your car yet,...but it keeps trying.  Can't seem to stop".

"Well, that decides it", said the REI.  "Since birds are an expert at hitting cars, I've decided to not buy your car now, and wait until birds stop aiming at them".

Andrew Syrios · Answer

I had a friend who was convinced the market was about to crash in 2015. He's waiting almost five years now without buying another property. Signs of a recession do appear on the horizon, but that could be several years from now still. I would be more cautious and demand a bit of a higher margin, but I wouldn't sit on the sidelines and wait for a crash that might never come. (Or might be very mild, real estate prices didn't even drop in the 2001 recession.)

Should I buy now ? Or should i wait for a market crash.

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