Health & Fitness
Timing the Bottom of the Real Estate Market: Don't Be Late
Are we at the bottom of the market yet? Some good news...maybe.
Simply put, before the bottom of any cycle you will have more selection, more desperate sellers and less buyer competition. After the bottom is announced in the media you will have much more competition from fellow buyers. Smart real estate investors are buying now.
Every year someone predicts we are at the bottom of the cycle. Is this the year?
Consider this. We are now at a point of balanced price to earnings ratios. That means that investors can buy a property with the traditional 25 percent down and rent it out with a positive cash flow. We are beginning to hear this from the pundits and from the National Association of Realtors. Wealthy cash buyers figure real estate is a solid investment with monthly returns and upside potential. Someday the “millennials” will have to move out of mom’s house.
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In addition, 2012 will be the sixth year of the cycle. That is about the normal length of a real estate cycle.