Time Is Passing in the Real Estate Market
Filed under: Home Buying, Real Estate Investing, Real Estate Market
You must buy real estate now. It is quite unlikely that you will ever be offered such an opportunity again to have a piece of the action in the mainstream of America’s wealth. The time has come. As you are reading this, opportunities may be passing you by. Don’t wait until you are left behind. The real estate market will stay strong, but house prices are steadily rising. Two years ago it was easier to find an ideal property than it is today. In two years time, it may be much harder. Therefore, now is the time. Things may change for you. In two years you may find buying a house much more difficult to do. Act while you can and that means now!
Three years ago, a friend’s daughter and her new husband rented an apartment in Boston while they searched for a house. They couldn’t make up their minds and saw no hurry in making a purchase. In six months they noticed that house prices seemed to have increased considerably. At the end of a year, prices in some neighborhoods they liked had moved beyond their reach, yet they still procrastinated. After two years they found they could no longer afford to buy a home in Boston. That was a couple of months before their rent nearly doubled!
If this couple had bought a house when they first started looking, they would now be taking advantage of the equity appreciation in their home. Even if they had invested in the worst house in the worst neighborhood, they would have made money. The lesson here is that by doing nothing, they lost out.
You can’t realistically expect the same boom conditions of the past couple of years to go on forever. Suppose you buy today and the real estate market boom stops tomorrow. Now what happens? If you can make the payments on your mortgage loan, you will have a property that increases in value in a predictable way. You will not make a short-term financial killing, if that is what you are looking for. However, while you wait for your wealth to grow, you have an affordable house in which to enjoy your life and provide for your financial future. You will come out way ahead in the long run.
What happened to the Boston couple? Sadly, they are still not ready to act. They feel priced out of the market and are waiting for things to settle down. They should ask themselves whether a loaf of bread is larger today than it was thirty years ago. The answer is that it is smaller and yet costs more. This is because of inflation. The Boston couple must realize that the opportunity they let slip away is gone forever.
