SHOULD I BUY NOW OR WAIT UNTIL THE PRICES DROP MORE?
I hear the same line of question from clients and Real Estate agents. The one that catches my attention the most is "Should I buy now or wait until the prices drop more?
"The answer is simple, if you find a great property with the right location and price and you have the means to buy it, go ahead and start enjoying it now. Exclusive and Unique properties in prime oceanfront areas are limited. Such a rare commodity that is available today might not be available tomorrow. Of course you may argue that there may be others in the future, but if you found "the one" and the price is right, then what are you waiting for?
There are not going to be so many properties that you will fall in love with. So, if you have already spent your time and effort to find the perfect property for you and your family, my advice is to act now.
If you wait, the market could suddenly turn around. It's a simple law of supply and demand, just like the price of gasoline!
Real Estate is highly fragmented, I cannot speak for every area, but I firmly believe that the prices of luxury oceanfront properties in South Florida have bottomed-out. This is my area of expertise, I am constantly analyzing and visiting properties in this area, getting input from hundreds of clients and real estate professionals on a 24/7 basis regarding the market conditions. This makes me a little more knowledgeable than your Attorney in Chicago, your Accountant in Wichita or your Swiss Banker. It seems to me, that some people are waiting for a subliminal sign or an official New York Times announcement that the market "has bottomed-out".
Meanwhile, at this very moment, shrewd investors are cherry-picking the best properties available. There are very good opportunities out there. Today's Real Estate marketplace is like a giant buffet ready to be eaten. So what are you going to do? Be first in line and get the lobster? Or wait, be second-in-line and get the leftovers?
Contact me now for a complete analysis of the best opportunities in prime South Florida's oceanfront locations.
Gustavo Farfan
Comments (2)
Mark, thank you for your concern about the marketplace. Everybody has different investment profiles. I agree with your statement that "anytime is a good time to buy". This is true, because there will always be opportunities in any given market place. But, be careful, it also depends of your investment profile. Right now, for example is not a good time to buy a property and try to "flip" it. Today's market place is a great opportunity for buyers that are going to keep their property on a long-term basis as a first or second-residence. If I were in your position, I would also be cheerleading for property value to keep on going down... but in my profession I have to be fair with my clients, whether they are buyers or sellers. Right now, we are in a total "Buyer's" market which means that is a great time to buy. When we were at the height of the "Bubble" we were in a "Seller's" market and therefore a terrible time to buy. There will never be data or any mathematic equation that tells you that the market is "at the bottom", because there are too many variables, different locations, types of properties, situations etc. Trust the experts for nothing, I heard. They all have been wrong before. Remember that we make the market. The people make the market and it is a basic rule of supply and demand. In my specialized segment of luxury oceanfront properties, there are very limited supply of properties. These properties are better suited to weather the market than property located on dry-lots for example. That is where the cliche location, location, location comes from. That particular luxury oceanfront area has bottomed-out and the prices have stabilized. Don't get me wrong, I am not saying that prices are going to skyrocket anytime soon. As a matter-of-fact, the prices will probably stay flat for another six or twelve months, but the best deals are up for grabs right now. In any given area and building there are two types sellers. The properties that are overpriced or at normal market prices. These properties will not sell, the owners refuse drop their prices, but can afford to carry the expenses for another year or two. The other type of seller understand that in this market they are not going to make money by selling, this the motivated seller. These seller's either have something better to do with their money (for example making money by upgrading to a better property at discounted prices) or simply they have decided to stop the bleeding, cut the losses and sell at the lowest possible price. Which sometimes is even lower than the original 2004-2005 acquisition prices! Sales may have slowed down but have not stopped. In a market where the only thing that moves are opportunities, it's fair to say that people that are buying opportunities right now, are buying property at bottom prices. These latter group of properties have bottomed-out. Gustavo Farfan "be fearful when people are greedy, be greedy when people are fearful" Warren Buffett -
Gustavo Farfan, over 15 years ago
Are you willing to put your career on the line in your bet that the Florida market has hit bottom? I only ask because blanket statements like the one are the type that get people buying investments they end up losing money on. I think you're right that now is a good time to buy, as was the height of the bubble. Anytime is a good time to buy as long as you're able to analyze and understand what a good deal actually is. Can you tell us some of the data that you're using that tells you that this market is at the bottom?
Mark Davis, over 15 years ago