Does buy and hold make sense when values are at record high?

[David Falk]

I’m just beginning my RE journey, but I can’t get over the feeling that it’s a bad time to buy and hold. If real estate values are at an all time high, would buying to hold and then refinance ever make sense? Values will likely be significantly lower in a few years, so it’s not like you’re missing out on equity growth by waiting?

Perhaps this just means flipping or short term rentals is the way to go at the moment. Any insight would be helpful. Thanks

[Arsen Atanasovski]

The answer to your post is, if the numbers make sense you buy plan and simple. If you can offer twice the price and your numbers are where YOU want them to be it’s a buy. Borrowing money now is basically free money at 2-4% the money is free. The way I look at it is if the bank can give me money at 4% for example and the deal is making me 10 more percent (14%) + then I’m in! That’s 10% on my investment, actually the banks investment. You can’t buy 20% of a Tesla share and receive 100% of the earnings but in RE you can:).