Buy it now! Don’t wait. “But why?” you say. I talked about this in the last video, but hey, let’s do this again – I want to make sure we’re on the same page. I’m going to give two good reasons today why you should not wait.
Reason 1, to buy now: There are obviously a variety of reason to buy real estate, but as an investment – the money and reasons start to correlate quite a bit, especially in residential. So why buy now vs later? Because you don’t want to miss the boat! In this market, there are unanswered questions, there are speculations to be made about how many houses will sell and how rates will change – but one thing remains true… Today’s prices are lower than tomorrow’s. Yes home prices will continue to rise. The only reason a home price in Nashville may go down, the reason you’re seeing home prices go down on the market right now, is because there will always be people who try to sell their home for more than it’s worth.
Reason 2: To add to reason 1, because your value will go up, it’s a great place to park investment dollars. Your real estate investment, right now in particular, is better than that of the stock market. All you have to do, is the math. Make sure you are buying a property that won’t be a loss in debt in the time it’ll take to hold and refinance. But once you do, and you cash out on the refinance, you’ve got money to spend elsewhere. Now, bear in mind, there are taxes to pay on the gains of the sale of an income property, well, of any property in the first few years. So if you don’t plan to live there as a primary residence, you want to know those details, but this is still not prohibitive in many instances, especially if this is an investment you can hold for a longer period. But this equity is leverage for future purposes. Don’t just put your portfolio expansion on hold unless you really can’t buy right now.
That’s really the only that should be stopping anyone right now. If the math isn’t there, then it is time to wait. But inventory is strong, competition is low, and rates are only scary if you can’t afford the short term loss. Because the long term gain is well worth the wait.
I hope this helped someone out there. If it did, let me know in the comments below! I’ll see you next time.