Future Market Crash?

Question

Hi I'm new to real estate investing. I was wondering i want to buy a house this year but I spoke to some investors I know,they say in the next 18 months there's bound to be a crash. Should I wait a year and see, or should i buy a house?

Nick C. · Answer

There's always about to be a crash. I've been hearing about it since the last crash. Anyone who needs to time the market right to make money is going to be in trouble, since it's not possible.

Andrew Syrios · Answer

It would certainly seem like the market is going to correct and maybe a lot, but I've been predicting such a thing since 2018 and it still hasn't come to pass. Be cautious and demand a good deal (which are, admittedly, harder to find these days). But I wouldn't just sit on the sideline.

Andrew Adam · Answer

Hi Michael,

That is a valid concern and it is always scary when starting out no matter what the market is doing. Even if there are some markets that experience a slow down in 18 months there are a number of reasons I still thinking waiting is not ideal.

I know people that I talked to 3+ years ago that felt everything was too expensive and were going to wait for a crash. Even if they would have bought a year ago they could have experienced a good amount of appreciation by now. Every year that you own the property it could appreciate, the debt is paid down and you could be getting cashflow. As equity builds up as well as your cash reserves it makes buying the next one easier. PLUS, once you have done it once the second one is not as scary. As you gain experience you get better at it and in 18 months you might be on your second or third deal already. Imagine if you started today vs waiting... You could be missing out on thousands of through appreciation/debt paydown/cash flow.

I think if you plan on holding for the long game and commit to buying at least one property a year then no matter what the market is doing overall you should be sitting pretty good.

Stephen Brown · Answer

This is a big decision, but if you're going to buy and hold, I would buy now and not wait. Over the long run you'll reap the rewards of your investment.

Diana Dorantes · Answer

@Michael Grigorashenko If you wait you may be wishing you hadn't.  HOWEVER, before you buy make sure you buy right.  Cashflow always, good buy, and make sure you haven't used up every penny to make this purchase.  House hacking is great when you are beginning.

Jack Smith · Answer

What better way to scare off any competition... 'just listen to me, rookie...'  As they say, the best time to plant a tree was 20 years ago.  The second best time is today.

Michael Plante · Answer

I’ve been hearing about a crash for literally 40 years

not a single person knows.  If you look you will can find deals in every market.  Good, bad,  great.  All markets

Account Closed · Answer

@Michael Grigorashenko I sold a property in Seattle in 2018 because of “the crash.” Wish I hadn’t. Hindsight is 20/20. If you hold for the long term it will all come out in the wash.

Future Market Crash?

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