All Forum Posts by: Sierra Johnson

@Sierra Johnson - I don’t disagree that the market is hot and a recession is most likely to occur, however personally I’m not smart enough to time the market.

I plan on using dollar cost average to buy real estate just like I have for my stock portfolio. I am planning to purchase a house hack and investment property each year for the next 10 years. These obviously need to be cash flowing assets.

I know I am leaving money on the table due to not buying at the low however this is a sure fire way to financial freedom in 5-10 years. I’m going to stay on this trajectory and not let market forces sway me from my path.

I always turn the question around and ask- "why would it crash?"

The last time it crashed it was because unqualified buyers received loans.  You're a lender- are you approving unqualified buyers?

For decades the demand has been higher than supply. No, material costs and rates are up so new inventory will be expensive and slow.  So maybe things level off but I don't see why process would fall

All markets will correct. Every time. 

So any time you see a market skyrocket, whether there seems to be a reason or no reason you can put a finger on, it will eventually correct itself.

I think we've seen a lot of foolish buying bc interest rates went down. Ppl were paying well over market value and that caused the values to climb fast. And I think when the frenzy buying stops and ppl take a breath, and values ease down a little (correction), we'll see quite a few ppl upside down. 

I think much of our economy right now is supported by the housing market. If the fed increases rates too fast or too much, it could cause this market to slow down too much and be detrimental to the rest of the economy (esp if gas prices continue to go up and inflation stays ridiculous). 

The market will correct, either by natural correction or forced correction. We just don't know the level of that correction.

I don't think the answer is to stop investing, but to be smart about investing. Don't get caught up in the frenzy. Buy properties in decent areas that you can build equity into and rent high now, but also have the room to half your rents and still make a reasonable profit (that's planning for worst case scenario)

I do not think the market can bear much more rent increases just yet. All the wage increases over the last 2 years are literally worth nothing because of the inflation heights. Until inflation comes down, supply lines free up, and gas prices go down, younger ppl aren't going to have the money to pay much more in rent (we are already straining them heavily). So in some markets, rents will necessarily have to come down a bit because ppl will find a way to live - either staying with mom and dad, taking in roommates rather than living alone, renting a room rather than a whole apartment/house, etc. 

So we should just be buying at prices that allow us to reap these great profits now, but that give us room to pivot to lower prices if necessary, so we're still making that income.

BTW, I do not see housing prices plummeting, simply bc building is limited right now. I don't see 2008 happening again. But I do see an inevitable correction to some degree.