Warning... Rant below lol...
Marry the house!
Date the Rate!
It's not just a corny saying, it is actually a great way to look at the market now
Lock your payment in today. Tomorrow the market might be different
This is making it extremely difficult for investors to make any of the numbers make sense, find any kind of cash flow and makes it difficult to afford the payments as a homebuyer
There is a silver lining.
Real Estate volume is very low this year. Lowest point since 2008.
https://www.statista.com/statistics/226144/us-existing-home-...
This means that when rates come down, which they will, you will introduce new buyers to the market who want to capture low rates, and Sellers wont have as much remorse selling their house and dumping their really good rates
Once this happens, increased activity is inevitable.
More activity means more competition and more Buyers which will increase prices.
Today, you can buy your home and Lock what you paid for it! Your rate can always change. When you go to REFi, it will be based on what you purchased for today.
Don't wait for a market crash. No one knows when it is coming or if it is coming.
Most people who have owned Real Estate for 10 years + have come out on top, even during the great recession in 2008. And that recession was a direct result of the housing market
During other recessions, house prices held their value very well.
https://fred.stlouisfed.org/series/ASPUS
The best properties will hold their value better than properties in not so favorable condition and location
So if you're considering buying now and worried that you are buying during a recession, aim for buying high quality assets.
High quality assets survive the best during hard times.
Think of GOLD
High quality assets also can be traded in most currency
High quality assets also protect you from from inflation.
What is a high quality asset?
- A/B Area
- Near attractions (national parks, beaches, etc)
- High rental demand
- Convenient location for work/travel
- Near a starbucks lol
Having your money sit in a bank doesn't do you any good. If inflation is high, your cash is devaluing while a high quality asset keeps up with inflation.
(Always have reserves, you cant buy food with home equity, its not liquid)
Someone recently told me: Having a lot of money sit in your account can turn it into "Bored" money.
Bored money gets spent quickly
Would you rather have 50k in your account and an asset that is appreciating and getting paid off, or have 150k in your account with no assets?
This was a rant, but hopefully it clears up somethings for you.
In summary, don't worry about when youre investing.
Time in the market beats timing the market. On that corny note, im out ✌️
