Should I buy now or wait?

2 Replies

Hey BP members.

I am 21 years old from Israel. I started learning RE couple weeks ago and im loving every bit of it. 

In Israel for the last 7 years there is harsh RE bubble... looking back 7 years ago the prices doubled. for example my apartment went from $100k to $220k. everyone says its a bubble and its going to explode soon but nothing happens (|that was 3 years ago). in this reality its not possible to start investing in RE here. 

my qustion: should i wait for the bubble to burst and then buy(no clue when it will happen) OR should i go all in and buy now?

@Netanel Malihi I have no clue about the Israel market but the "should I invest in this bubble market?" is a question that I can answer generally. My take is to proceed with caution (i.e. don't go "all in" if that means spending all your money) and learn how the investors in your local area are making money AND how they were making money 2 - 4, 5 - 7 and 8 - 10 years ago so you get some context on if they have evolved their approach. 

There are always good deals when you work directly with the seller because you can structure deals however you want to but they need to be motivated and you have to know how to do it. 

I think there's an Beginner's Guide on BP - I'd check that out too. 

Netanel Malihi similiar to Joe, Im not familiar with the IS market, but have advice on the what to do in a bubble question. Have a plan every outcome. The market can only do 3 things: go up, go down, or stay where it is. Put together a strategy that makes your profitable no matter what the market does. Ex. If you can get a property now that cashflows, and are happy with the cashflow alone, then you dont care which way the market goes anymore. Also, every month you put it off, is a month of rent you could have earned. Doing nothing still cost something. Hope that helps, Clinton