Buy Low and Sell High
There are always stories of smart investors who take plus of the downturns in real estate cycles, downturns in the stock markets, or overall downturns in the economy. While whatever people ‘hunker down’ or even panic during the arduous periods, others countenance for opportunities, or specifically move for the opportunity cycle to come, as it has now.
While one of the mantras of finance is to Buy Low Sell High, this does not always work out, does it. What we inevitably see is this: when something is hot like bag rentals or condos recently, everyone rushes in to buy, but when it drops or freezes up, everyone panics and sells or tries to sell. Often we Buy High Sell Low, and that is a pity. Of course, when it comes to the realty world, an added culprit has been financing. Some investors over financed, or when everything else in their portfolio and life crashed, they had trouble meeting debt service. It certainly seemed that in whatever cases, credit was too easy just as today it is extremely arduous to obtain. A majority of lenders have not been open to working with borrowers who are in a jam, either.
When market conditions are in an opportunity state, as they are now, two points seem clear: cash is king and opportunities abound. Many investors are troubled most values or wonder if the frugalness will change further. If they are suffering with under performing real estate bought at the peak of the market, they understandably become fearful of new acquisitions or frozen into inactivity. However, others are just troubled in general and fail to see the opportunities in face of them. There is no question that property can be picked up at deep discounts in many parts of the country, whether it be a bag for rental or a commercial property. Thorough cod diligence is needed, of course, and a basic analysis of cost of ownership should be weighed.
Tags: Agent, Building Process, Home Value, industry, Landlord