I'm 18 and currently trying to purchase my first investment property. Still deciding if I should flip or rent it...
Only thing holding me back from purchasing a property is the market is INFLATED in the New Jersey area, where I'm from, and I'm afraid there will be a crash in the housing market within the next year.
Whats everyone's thoughts? Does anyone expect a crash in the Jersey Shore area? Should I buy even though theirs a lot of turmoil in the water and the markets inflate?
New to Real Estate · Orange County, CA · Member since 2020 · 214 posts · 184 votes
5y
I don't think we will see a housing crash any time soon. We might see foreclosures but because of how low interest rates are, there are a lot of cash buyers who are ready to buy. We might see prices drop a little bit once interest rates rise, but the Fed said they are not going to raise rates for a few years. In general, don't try to time the market because at the end you are going to miss out on all of the appreciation. You can be waiting for 3 years for the market to drop, but in most cases, you won't be getting a large enough discount to justify waiting 3 years (it's different with commercial real estate however). Don't forget about your opportunity cost either, all the time that you are waiting to buy, you are missing out on cash flow, appreciation and tax deductions.