Are you Buying or Watching?

Question

Is it safe to assume by now that as an investor I should put a pause on buying rentals & wait for something to happen with the Housing market?

Wesley Owen · Answer

Hi Dylan, you are definitely going to receive many varying opinions on this subject!  I think each investor has to evaluate their own personal financial situation to determine if it is the right time to invest. You will always have people telling you to wait and that "now" is not a good time to invest and that the real estate market might crash and that you should hold off. In 2009-2014 many people held off on investing because "it wasn't the right time" and they were concerned that the housing market was going to continue to decline. Looking back now, these were some of the best years to purchase real estate with pricing at historic lows in recent years. I purchased duplexes in 2012 and in 2014 and those were my best purchases ever and I will probably not find a deal like that again.  I am still personally looking to invest right now and actively looking to close on 5 -20 units before the end of the year. As long as you evaluate the deal based on today and not future equity or excessive rent growth, you should be fine.  My two cents.

Ujwal Velagapudi · Answer

I would suggest you to still keep an eye on the market, analyze deals, build relationships, etc. If you are a brand new investor, it may be better to hold off especially when so many additional factors are at play now, not just a simple property that you're assessing.

I wouldn't be quite as worried about what the housing market will fare (of course, but at a later time), the more important issue is how the governments are reacting to the covid situation, how the markets (equities) are reacting to the government & covid, and then also the news of a potential political landscape shift on November 3.