Property Manager · Denver, CO · Member since 2016 · 107 posts · 43 votes
6y
@Elijah Bryant The best time to purchase an investment property is yesterday, and the second best time is today. Attempting to time the market is a losing game - that goes for stocks and it goes with homes. People have been talking about a "crash" for years now, and wise folks who bought anyway have now enjoyed that many years of outstanding appreciation in Denver, while tenants are paying down their loan principals.
You aren't going to be able to time the market. People will always say there will be a recession, rates will go up, etc. Find a place that works for you in terms of space since you will be living there and the numbers and go for it.
I agree with the others. I think the idea of a "best time of year" to buy is a misnomer. The consensus view is that there's less inventory but fewer buyers in the winter and more houses on market in summer and more buyers. So that's a wash, right? But then this January/February in Denver, the market has been crazy. Multiple offers on houses, over asking. And it's just the start of winter. So who knows?
The best time to buy is when you're ready. The 1-3% fluctuation of prices month over month doesn't mean as much as the year over year appreciation that you hopefully see in the long term. As the saying goes, don't wait to buy real estate; buy real estate and wait.
Property Manager · Denver, CO · Member since 2016 · 107 posts · 43 votes
6y
@Elijah Bryant The best time to purchase an investment property is yesterday, and the second best time is today. Attempting to time the market is a losing game - that goes for stocks and it goes with homes. People have been talking about a "crash" for years now, and wise folks who bought anyway have now enjoyed that many years of outstanding appreciation in Denver, while tenants are paying down their loan principals.
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
6y
@Tyler Howell Ha! That was my first thought when reading this post. I agree with everything else, especially the "crash" philosophy and lost equity. There is no better time than now to buy.
What @Tyler Howell said is spot on. Google Peter Lynch(Fidelity guru) and his opinions on market timing. I’m paraphrasing but what he said was more money is lost in timing the markets than in the actual correction when and if it happens.
Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
6y
Actually, the best time to plant a tree was 20-50 years ago. Same with buying a house. Buy only when you know 100% for sure what happened to it over the past X-years. ;-)
Which is, of course, impossible.
Is the market "up" now? Yeah. But three years ago it was "up" compared to 100 years ago.
What will it do tomorrow? I dunno. Neither does anyone else. Anyone who tells you they know is a liar or incompetent.
They key is to always buy a property that makes sense. When you buy property that is well located in a market with diverse economic base, that is growing, that has many attractive features, and is reasonably priced compared to the average income for the area, you set yourself up for success. Success can be delayed if we get another 2009 style crash, but ultimately if your finances are solid and you can weather the storm, any house that fits those criteria will make you money.
The people who get in trouble are speculators who overextend themselves based on assuming wildly inaccurate projects of the future will come true (ex. "Real estate ALWAYS goes up!"), then then when there's a down turn they can't hold on thru to enjoy the recovery.