Is now a good time to buy a property or should I wait ?

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Is now a good time to buy a property or should I wait ?

Ramon Vargas

Member since 2020 · 12 posts · 5 votes

I’m not sure whether to buy a house or wait because houses are going to crash soon?

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Sam Lewis

Real Estate Agent · Baltimore, MD · Member since 2018 · 285 posts · 228 votes

It's a fool's game to time the market, I truly believe there is opportunity in every market. I buy properties for cash flow and always have cash reserves on the side in case of vacancies.

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Sam Lewis
Real Estate Agent · Baltimore, MD · Member since 2018 · 285 posts · 228 votes
6y
It's a fool's game to time the market, I truly believe there is opportunity in every market. I buy properties for cash flow and always have cash reserves on the side in case of vacancies.
4 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
Find a place that works for you and the numbers are good. Don't try to guess what the market will do, real estate is a longer term investment. Unless you are flipping, you are not going to be selling a property within a few years of purchasing it or all your money will be going to realtors and lawyers.
3 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Ramon Vargas
Timing the market is impossible. If a decent deal comes along take it. There is no crash like in 2008 coming. To many precautions are built in to prevent it. I agree there will be foreclosures in the coming months and years due to the COVID-19 results. Rental property will continue to be popular. Spoke to a banker the other day, he has homeowners turning keys back to the bank because of the inability to make the mortgage payments.
Invest for today and prepare for tomorrow.
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Ramon Vargas
OP
Member since 2020 · 12 posts · 5 votes
6y
@Kenneth Garrett Thanks
1 Reply
Ramon Vargas
OP
Member since 2020 · 12 posts · 5 votes
6y
@Theresa Harris Thank you!
1 Reply
Ilcar Rosario
Member since 2019 · 20 posts · 8 votes
6y
If you wait for the perfect time you will wait for ever. Trust your numbers and your guts. If your numbers meet your criteria and make sense go forward.
1 Reply
Alex Lien
Real Estate Agent · Raleigh, NC · Member since 2020 · 29 posts · 10 votes
6y
As others have said, timing the market will only make you wait forever. Interest rates are very low right now (assuming your credit is good) which makes renting a property out slightly more profitable, or if you're just trying to buy a house to live in then you're just making smaller payments each month. A crash like 08 probably won't happen just because that was mainly caused by investment banks trying to save their balance sheets and securitizing mortgages that were worthless to make more money for themselves.
There will probably be an increase in foreclosures in a few months due to COVID and people falling so far behind their bills and companies laying off more people but that's just buying opportunities for people who prepared for it and gives you the opportunity to get an even lower interest rate when the FED lowers rates even further.
Good luck!
0 Reply
Kiera Underwood
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
@Ramon Vargas it depends on what market you're looking at. If it's a market that typically holds values through downturns you're more safe. But if it's a market with a lot of ups and downs there is more risk. Where are you thinking of buying?
0 Reply
David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
6y
@Ramon Vargas
I am waiting until end of this year, to see how is the market going.
Timing the market is critical for success. Too many newbies and so called gurus claiming that timing is impossible.
Anyone bought in 2010-2012 are big winners. Anyone bought in 2007 were big losers.
History has already shown that. Why people can not understand that?
1 Reply
Ramon Vargas
OP
Member since 2020 · 12 posts · 5 votes
6y
@Kiera Underwood Stockton California
1 Reply
Alex Lien
Real Estate Agent · Raleigh, NC · Member since 2020 · 29 posts · 10 votes
6y
Originally posted by @David Song:
@Ramon Vargas
I am waiting until end of this year, to see how is the market going.
Timing the market is critical for success. Too many newbies and so called gurus claiming that timing is impossible.
Anyone bought in 2010-2012 are big winners. Anyone bought in 2007 were big losers.
History has already shown that. Why people can not understand that?

In my opinion that only shows that timing the market correctly is near impossible and you always have a 50/50 shot of getting it right, but I'll agree that it is critical for someone's success to try and time it correctly. I don't think people who bought in 05-07 ended up buying because they knew the market was going to tank, they bought because the market was perceived as okay and the unexpected happened. The people who bought in 2012 had it pretty easy and while they generally were the big winners they still could have ended up as losers if things changed for the worse.
Regardless its really up in the air how the market will react to certain news and I think COVID showed that because despite a very uncertain future where most would think home buying would be on the decline, people are still buying houses because human behavior tends to react irrationally.
0 Reply
Victoria Pham
Realtor · Member since 2020 · 82 posts · 83 votes
6y
Ramon, I understand your concerns but we can never truly time the market. From my personal insight as a consultant, I see the Philly real estate market is booming. Investors are hungry for good deals and they don't have many problems investing now. As long as the numbers make sense, I'd recommend you take the chance. But again, only you know what you want, so best of luck and let me know how I can help
0 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
Originally posted by @David Song:
I am waiting until end of this year, to see how is the market going.
Timing the market is critical for success. Too many newbies and so called gurus claiming that timing is impossible.
Anyone bought in 2010-2012 are big winners. Anyone bought in 2007 were big losers.
History has already shown that. Why people can not understand that?

History does tend to show that, but you have to be in the future looking back to see it.

That's kind of like saying history has shown us the Chiefs won the last Super Bowl. Why did all those losers bet on the 49ers? ;)

Hindsight is always 20/20.
2 Reply
Ramon Vargas
OP
Member since 2020 · 12 posts · 5 votes
6y
@David Abbate That’s a great idea, am gonna ask people where I can find good deals in Stockton California
1 Reply
David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
6y
@Alex Lien
People who bought in 05-07, most are bankrupt, some lost a significant fortune.
Some became homeless.
I bought an REO in Redwood City, ca, in 2010. The previous owner, who bought it at double the price a few years ago, was sleeping in the garage after the bank took over the house. I still saw him wandering in the neighborhood the next few months while we rehabbed the house.
He bought because he thought he does not need to time the market. Price will always go up.
Only fool will believe that they can buy anytime. Such a statement basically assumes that the market will always go up. That is simply not true.
Unfortunately, if you buy at the wrong time, it can easily ruin your financial life. Be very very prudent.
0 Reply
Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
6y
All markets are different but in my own market I try not to time market, you should always be looking for deals that work for you and be buying in every market cycle...the ups and the downs.
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1 Reply
Kiera Underwood
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
Originally posted by @Ramon Vargas:
@Kiera Underwood Stockton California

CA would make me nervous.. but a more stable market might be more comfortable?
That said if you get a great deal due to corona, that's another story!

0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@David Song
I agree with your statement people who bought (2010-2012) are big winners. Depending on market, maybe even extending to 2013-2014, are still winners but just not as much. Losers definitely 2016-2017. This is timing the market. However, if you bought at market high's, then it is still possible to make it out on top if can hold onto the property until recovery. It's harder but possible.
Many have said you cannot time the market, but does not prevent those from trying.
0 Reply
Craig Jeppesen
Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
6y
It is always a good time to invest. Investing is about the future. Also in real estate there are always opportunities. Look for them. I am under contract to buy a new townhome. The builders got scared and dropped their list price by $15k. I knocked a few k off of that and I have licked a 3% interest rate. Before Covid the numbers didn’t make sense. Now they work so I am buying. And they have already raised the price again as they saw they didn’t need to be scared. I have instant equity on a new construction project and my area is hot with appreciation.
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David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
6y
@Terry Lao
In the stock market, we have bullish, bearish, and neutral positions. Where we can choose to buy, sell or hold.
In housing market, we can also choose to buy, sell or hold.
Therefore, if someone says that he does not time the market, what exact is he talking about? Is he bullish, bearish, or neutral? Is he planning to buy or sell, or just hold?
The simple statement of “I do not time the market” is simply illogical and does not say anything. If you say I am bullish all the time, and do not time the market, then I can understand you. YOu are planning to buy all the time.
Someone can also be bearish all the time, and never buy and only sell. He is not timing the market either. A lot of people are like that, never buys real estate. Only invest in stocks.
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@David Song
In real estate, the most common question " is it a good time to buy or sell " and the most common answer is " it depends ". It depends on your goal........buy, sell, or hold. My strategy is buy, hold, and sell. I'm selling a 4plex in Las Vegas that I bought in Apr'16, and will net around $220k. It's hard to argue taking profit when cash down payment is $42k, which is over 500% profit on cash on cash return.
No one ever lost money when taking profit. I just felt that below real estate cycle was impacted by coronavirus, or I would have held.
0 Reply
David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
6y
@Terry Lao
I am planning buy in Las Vegas after end of 2020 or sometime end this year. I am currently bearish on LV market. And will be very bullish if a correction occur in LV.
That is my strategy and plan, simple and clear.
I do time the market, whether it’s right or wrong, we will know 5 years from now.
0 Reply
Thomas Enright
Investor · Silver Spring, MD · Member since 2020 · 127 posts · 58 votes
6y
Don't wait to buy real estate. Buy real estate and wait.
It's never going to be the perfect time to buy a property but if the numbers work and you can do it, do it.
0 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
@David Song
I agree, you are not “timing the market” if you plan to buy in Vegas at the end of the year because you are waiting on something (money/partner/credit). But only if you plan to buy then even if prices are up 10% from today. But if you’ve sat through the 30% run up of the last couple years waiting for a 5-10% decrease then you are timing the market and currently losing. If prices drop 30% you’ve only lost a few years of income. Unless you literally couldn’t have bought before now.
0 Reply
Willie Brown
Investor · Imperial Beach, CA · Member since 2017 · 25 posts · 21 votes
6y
I'm very bearish for Las Vegas right now as well. I can make a better bear thesis than bullish thesis for the area. I'd rather put money in tankers and uranium than Las Vegas. I'd look at Vegas if it pulls back 15% or more.
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