Thread: Is it time to buy or sell?

For all the realtor out in this forum, I have a question for everyone. Is it time to sell or buy? I live in NYC and wants to get out of the city but I am reluctant because of all the news about the realestate market being very bad. Any advise?

I heard a guy on TV say that we're at the bottom now. I heard another say we'll be at the bottom next June. I heard another say that we were at the bottom in May. I don't think anyone knows for sure but this I do know. There are certain markets out there that have been unduly hammered. They'll be the first to come back when things turn around and probably quickly. Are you looking at buying in an area that has seen severe reduction in value? If so, it's probably a good time to be shopping. Of course you have to find a lender that's lending! Big changes there!

First, and most importantly, it is not always wise to listen to ONLY the media regarding any financial decision. You need to consult your tax person, your retirement/financial planner, a lender, and most importantly a REALTOR with the insight into the markets you are looking.

It could be a great time to buy OR it may be a bad time to buy. But unless I was in your market, and looking at the current and historical trends in that market, my advise is all based on guesses and theory.

My area is great to buy in. If you are worrying about timing the market, does it matter if you buy on the way up or down as long as you get the same relative value property at the same price? And if you can accurately time the RE market or any other market, you would be very rich since no one can be 100% sure of the future of any market. Sure you can look at trends, but knowing when this trend will hit bottom, no one knows.

The factor to consider is lending. Seeing what you can qualify for is the first step in considering buying. Do not look at homes until you do this, you are wasting your time. Just because I can look at a brand new Ferrari does not mean I can buy one. I may want one, but that does not change the fact I cannot buy one.

So talk to a lender FIRST. Then consult your tax person and other financial advisors. Then, last step, consult a local highly recommended REALTOR to assist you with a report on only your local market in only the price range you're qualified to buy.

If you can afford it, then I think it is wise to buy. If not, then you have to sell. This is the most practical thing I can think of right now.

This may be the best time in the last 20 years of real estate to be a buyer. Rates are low, inventory is high and prices are rock bottom. The "smart investors" are all buying now.

My outlook is simple: I look at every investment in terms of cash on cash return. Here's what I mean: if I can buy a house or an apartment bulding, and from the cashflow, I will receive a current return every year of above 15% on my cash investment or downpayment, after I take into account mortgage payments, taxes, insurance, maintenance, and vacancy, then I buy. If over my holding period, I get some decent appreciation, then great. But if my property is worth exactly the same in 10 years, I'll still have made great money on my investment.

People used to assume appreciation was a given, but now I invest without even taking appreciation into account. The property must produce a current return with cashflow that will make me happy. So that's my 2 cents.

VAinvestor,

It sounds like you've got the real estate investing game reduced down to the nitty gritty. If you can buy property now and are able to hang on to it for awhile you will get appreciation. No matter where the bottom is, eventually the value will go back up. I've been in the business for over 40 years and I've seen several tops and bottom. All things considered now is a good time to buy.
donrock

Donrock,

I know you're experienced, but I still would use caution against assuming appreciation as an absolute guarantee everywhere. Certain markets may never see much appreciation again, unless you're talking a much longer horizon like 30-40 years.

The other thing is, even if you do get appreciation, it has to be the right kind - a rate that's higher than inflation, for your investment to benefit. If we get hit with a massive inflation wave, sure, property may keep pace with it, but at the end of the day, you're just keeping pace with inflation.

Daniil.

I think that we're gonna see appreciation again. The hard part right now (at least in my market) is holding the property. Along with reduced prices we're also see greatly reduced rents, because we have alot of investment properties and second homes here so everyone is trying to rent them out. So now vacancies are up, also.

Hi, I would advise getting with Realtor in NYC. This will determine if you should sell the home in the city. The market in Florida is do not sell unless you have to. This is a great time to buy Florida real estate, the prices are very low due to the foreclosures.