Can investors really time the real estate market,
or is it wiser to just consistently invest, and hold?
We all know that there can be fluctuations in
real estate prices, even if values are constantly
going up over time. So, is it possible to time
the market? If so, what does it take? What’s
the best way to do it?
Why Try to Time the Market
Trying to time the market is critical in publicly
traded stocks. Stocks are now believed to be
70% or more overvalued. It can take a decade
or more to recover from that, just to get back to
par. There isn’t anything you can personally do
about the stock prices. You just have to wait.
Worse, there is no downside protection. If it
goes too deep, there is a PR scandal or the
industry changes, all capital may be lost. It is
vital to sell before the market begins to dip,
and buy again before it begins to go up, if you
want to avoid negative returns.
Real estate is a little different. You can
absolutely find greater bargains during tougher
times, and sell high in bullish times. This
strategy can absolutely help to maximize
returns.
Is Timing
The Real Estate Market
Possible?
However, real estate is a tangible, hard asset,
that will be there no matter what. It can also
produce income, which doesn’t vary much as
asset prices fluctuate. Plus, you can control
the value of your real estate assets with
improvements and repositioning.
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