When's the Right Time to Buy?
She’s so hot right now.
Understanding real estate market fluctuations and risk analysis
I’m sure you have heard the expression location, location, location! However, I prefer to focus on timing, timing, timing!
A big mistake most homebuyers and investors make is entering the investment game at the wrong time. For example, as I write this email I own 16 investment properties yet rent a condo in downtown Ottawa. Why on earth would I do that? Let’s look at the math.
I pay $1540.00 per month, half of which I can use as a tax deduction for my home office. If I had purchased this property, my monthly expenses would have been approximately the same. Owning is better than renting right? Depends. I will admit that if I owned the condo a portion of my monthly expenses would be used to pay down my mortgage. But what would happen if the market dropped 5-10% next year?? I could find myself in a negative equity position (owe more than I own). Wouldn’t it make more sense then to wait before buying?
This is exactly what I’m doing.
If you ever have any questions about real estate markets, any at all, please don’t be shy. Give me a call or send me a text or email. I am always willing to chat real estate over a cold beer or strong coffee.