Is now a good time to buy or its best to wait?
I've been debating on getting my first rental property, however having experience with investing in the stock market, I understand the critical nature of 'getting in at the right time.' Sometimes that isn't an easy call because prices continue to go up and you really don't know if the trend will continue or reverse. I'm sad to report that I have been burnt buying stocks on top days before they crashed down, so now I'm hesitant in doing the same in real estate. At least with stocks you can cut your losses and move on, but not so with a mortgage.
In central NC, there is a lack of supply and high demand, especially now during the summer. Properties are selling fast and way too much for what I'd consider a good investment...if anything, you'd be lucky to break even because there is little motivation to sell for less. I don't take appreciation into consideration and maybe others do, but how do they know prices wont come crashing down? I'd buy and hold, but being upside down in a mortgage and where rent doesn't even cover it is my fear.
What comes to mind is Trump tax plans. The impact of is said to send prices down quickly by 15%. Seems its best to wait for that to happen?
Researching the topic, many think 2008 to 2014 was a good time to buy, but since then prices have been going out of control with a steep uptrend, but now peaking trending lower in the future or at best flat. Now many are selling to cash out and it feels like I'd be buying at the peak of prices to benefit an investor if I were to buy today.
The stock market has lots of talks about valuation. Many companies are trading outrageously high due to potential earnings that may never materialize. Even if a company has positive earnings, their stock is still dropping because it wasn't good enough considering all the speculation and expectations investors had many months before where the price got set! Smart investors continue to ride the wave, but are quick to pull out or ready to profit from it. The recent tech sellouts are a tell sign that potentially a crash is coming to get prices back down to realistic levels...some of these tech company's stock price is trending up, but actually have negative revenue or haven't even sold ANYTHING yet. Tech bubble all over again anyone? Maybe this has nothing to do with real estate and a reason I should get out of stocks.
Mortgage interest rates are really low still and projected to continue to rise now that the market is past recession. This is a good opportunity to lock in a low rate still.
Please let me know if I'm just trying to convince myself to wait or there are any real merits in doing so?