Remember the ancient curse? “May you live in interesting times.” While many are indeed cursing the current real estate climate, others see opportunities.
In a soft market, the short-term options dwindle, but seasoned investors in for the long haul are positioned to take advantage.
In the words of billionaire J. Paul Getty, “Buy when everyone else is selling and hold until everyone else is buying.”
Just like the stock market, more money is often made in a down cycle than in an up market.
Slower times encourage sellers to be more open to negotiation. Combine acceptance of lower prices with currently low interest rates, and you’ve got the perfect recipe for bargains.
Real estate is continually cycling, and it’s guaranteed that prices will rise again. The time to get in is now, before that begins to happen.
A buy and hold strategy works in this market while your property appreciates. As you wait, consider leasing it. The property can pay for itself with rent collected, and an investor that can pay off a small mortgage is in an excellent position indeed.
Learn from a trusted Realtor and your tax advisor how a 1031 Exchange can greatly reduce your tax liability when it does come time to sell your investment.
Now is the time to get in, but be sure to know how you’ll get out, too!
The Placer County Association of Realtors is the professional trade association representing approximately 3,300 Realtors, affiliates, and other related industry representatives in Placer County. Call them at (916) 624-8271 or visit their Web site at www.pcaor.com.