The housing market in the triangle seems a little overheated to me. Do the folks on this forum have an opinion on that? And whether this is a good time to invest in real estate?
Yes, the market is a little overheated although it is slowing down.
I personally don't think that there is a good or bad time for real estate investing. It really just depends on what your goals and strategies are. If you are investing for the long run, then the cyclical market might not be such a big deal.
I personally don't want my equity or cash sitting around, i rather have it invested and have nice cash flow.
If you are flipping, then hot market is actually good in my opinion because home buyers are paying above property value just to get move in ready property. (they are typically buying for the long run since that is where they are going to live so they might not really case as much about the cyclical market neither).
Yes, you can get into a flip just when the market crashes and you are screwed but you might not be able to predict that time anyway so my advice is to move as fast as you can and do as many flips as you can while it lasts to save up some cash for when the market is down, then start getting a great deals.
I think the worst thing is to keep waiting.. The market cycles are long so if you wait for "great" market to purchase or flip, you might be sitting around for 10 years.. That is lots of missed opportunities in my opinion.
I don't want to get into the what will happen with the market, but i don't think it would be anywhere close to what it was in 2008 and i don't think it would happen for at least a year or two. Most likely the market will just slow down or stagnate for a while..
You can't be an investor if you are too worried about loosing your investment.
Hi @Asif Aman - I wish I bought more property back in 2010 to 2014. Ha!
Yes, the Triangle market is tough and very hot. I personally have found it very difficult to find buy & hold property that can meet my ROI requirements. Anytime I see a halfway decent deal it is an off-market deal.
I don't really flip properties, but the couple friends I have that do flips in the Triangle still do deals. Again, almost everything they do comes from an off-market deal. Then a couple transitioned to new build a few years ago as it was harder to find flip deals.
There are still deals to be found, it just takes a lot more work. As an example, I use to look at 10 deals and could find one I like. Now it takes looking at 100 to find one I like. Then even once I find it, I might not get it because someone else moves quicker than I can.
But, I personally feel there is a lot upside potential in the Triangle market. Now that won't get me to buy only on hopes of appreciation.
Thanks, both, for the replies. I agree that waiting for the perfect time to enter the market could take a long time and even then it's hard to know where the bottom is.
I am still doing my homework. but in the meantime, I will continue to learn about the market here.
@Asif Aman There is never a bad time to enter the market. I agree with @Jiri B. on that point. You just have to be willing to analyze many deals and hold out for that one that will continue to cash flow. It will come to you...just be patient.
@Andrew Kerr Definitely takes a lot more work in this type of market and definitely don't buy on the appreciation story.
Thanks, @Dan Handford . It's a balancing act, in my opinion. There is an opportunity cost to sitting on your cash, too.
@Asif Aman I agree wholeheartedly with you on the lost opportunity costs but you can easily park your cash in a marketable security such as tax free municipal bonds so you can access when a good deal is available. Sitting on your cash/losing short term gains is much better, IMHO, than losing your money in the long term with a bad deal.
I flip/build houses in the triangle. I have still plenty found of good deals that will give me a good profit. I mostly just look on mls.