Why is right now the best time to invest

Question

I often hear David Greene say on the podcast that he believes that right now is one of the best times to buy real estate as an investment. I wanted to ask why that is because the price to buy real estate right now is very high and the interest rate is also continuing to rise right now. So why would right now be one the best time to buy?

Logan McKay Zylstra · Answer

I think what he is trying to get at is that waiting to buy real estate will only delay wealth creation and more than anything trying to get people to take action.

Goes back to the concept:

The best time to plant a tree was 20 years ago, while the second-best time is today.

Steve Vaughan · Answer

If I was an agent and promoter of real estate investing, I'd say it's a great time to buy as well.

I'll attest now is a great time to sell.  Cash, no inspections, no need for agents if you're priced right.

How can it be both simultaneously?

Mike Dymski · Answer

I've never understood why "time" is part of some investors' criteria.  Maybe it's not...and it only applies to non-investors.  Or, it only applies to investors where time matters because of the inability to source opportunities where timing is not critical to success.  I suspect it's the latter.  We don't invest in the "market", we invest in specific opportunities and there are opportunities in all market conditions.  If we don't have those opportunities (like many investors do), we need to go to work getting them (or invest in another asset class).

Bill B. · Answer

The idea is interest rates will be higher in the future and inflation will continue. Both of these things would make now a better time than then. If your plan is to never invest that doesn’t matter. But if you do plan to invest, now is better than later.

Aaron L. · Answer

I've often heard it said on the BP podcasts that if the deal works, then you should buy it regardless of what you think might happen in the real estate market. Of course it's very difficult to find good deals these days, but if you find a deal that meets your buying criteria then there's likely not a good reason not to buy it, unless you don't have sufficient reserves to handle any surprises that come up shortly after purchasing.

Joe S. · Answer

Come to think of it most people promoting buy now do have an incentive to push that mindset…. Of course I’m still buying, but it’s off market typically.

Jonathan Stone · Answer

@Aakash Deol

As was pointed out by others, before is better than now is better than in the future. If you wanted to start there are more different methods of investing than any time in the past. More information about those methods available for little cost. More capital is available and even with rates going back up, money is still cheap comparatively.

Katelyn Andrews · Answer

It depends on what your strategy is. If you’re buy and hold and the numbers make sense then why wouldn’t you? It doesn’t matter what the current market is right now, it really matters what you think it will be in the future.

Kushaal Malde · Answer

@Aakash Deol as others have mentioned, if the numbers make sense for your strategy then it will almost always be the right time to buy. The difficulty is finding/creating a deal to fit your needs. The market is cyclic and dynamic, so values and interest rates are always in flux and it can be futile to try and time it.

Bill B. · Answer

Easy. You think it’s a great time to sell. Have you sold everything? Why not, “it’s a great time to sell” and future looks dim.  Probably because most of us are only going to sell when we can use the money to buy something bigger and/or better, hence a great time to buy and a great time to sell. Still others disagree with it’s a great time to sell as they don’t plan to ever sell, they only think it’s a great time to buy. If you sell now you better have a great use for the money outside of real estate investing as I think the market will only get tougher. Higher prices and higher interest rates combining to make payments higher. Lock in todays rates while you can. If hey go back down you can refinance, if they keep going up you’ve got free money. Nobody is predicting rates will stay the same.

Why is right now the best time to invest

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