Are you going to do buy and hold in 2023?

[Jin Zhang]

Hi everyone, 

I have been seeing a lot of discussions about the real estate trend in the coming two years. Due to the raising interest rate, the majority has been predicting that the real estate price is likely to drop in 2023 and 2024. The drop could be up to 20% in certain areas. I am wondering if people are still doing buy and hold? If we purchase a cash flowing property, the property value might drop 20% by the end of 2023 or 2024. This could mean fewer deals due to higher entry price. Should we just wait a bit for the price to drop a bit more? Are you still actively buying buy and hold deals? What is your view on this? Anything input is appreciated! 

Thanks,

Jin 

[CJ M.]

@Jin Zhang

Interest rates and property values are sort of irrelevant to me. Don't get me wrong, I won't buy a property that is way over priced, but at the end of the day, I could care less what the interest rate is and the purchase price is so long as the deal meets my cash flow goal/need. And so what if property values drop in the next year or so. We're talking buy-and-hold so no plan to sell it anyway.

Lastly, I have never heard a highly successful Real Estate Investor say "Gee I'm so glad I timed the market and waited..." 😀