Buy/Sell/Hold? What's your plan for 2017?

[Jen L.]

Hi All,

I have been pondering for this question for some time now.  Should I buy in 2017?  In the Bay Area, the market feels like the peak.  However, who knows how long this plateauing will last.  What's your plan for 2017?  What's your reason behind it?   

Thanks!

Jen 

[Account Closed]

Jen,

It depends on how savvy of a buyer you are. The old timers told me time in the market is just as important as timing the market. 

You have a good chance of being right with your observation about 2017. However, how deep of a correction do you think we're going to see during this cycle? If you can pick up deals at 20-25% off today's prices, are you a buyer, or would you rather wait for the impending correction? 

I'm always a buyer for the right price and a seller for the right price. I started selling in 2015 and used the proceeds to buy a 7-unit building here in San Jose. I'm in the process of selling another property now, and planning on selling another one next year. When your capital gains are $200k-$250k a piec, it takes little tax planning to reduce the tax liability if you're not going to do an exchange. As I don't have anything lined up, I'm going to pay the taxes on this sale, use the proceeds to paydown the debt on my primary residence.

There are times you go all in, and there are times you have to be patience and wait for the right opportunity. Now is one of those times IMO. Of course, this is only one man's opinion so please take it with a grain of salt. 

Good luck.