CONDO INVESTING SECRET #1 - IF NOT NOW, WHEN?By CondoWong Wednesday June 5, 2019
If you were to use 1 word to describe the condo market in 2019, what would you use?
I'd say "expensive".
So if you’re thinking about investing, should you buy? Or should you wait?
When the market is going up, people like to say “It is too expensive. It is a bubble. The market is going to crash. So don’t buy”.
When the market is going down, people get freaked out, they’ll say “it might go down even more, let’s wait till it sinks to the rock bottom”.
When the market is flat, people would be like “the market may swing up, or may swing down, so let’s wait”.
So, you see, there’s never a good time to buy.
This is one of the reasons why 80% of the people lose their money on stocks because they think they can maximize their profit by buying low and selling high.
If you think you can time the market and make some quick money, the stock is definitely the way to go.
Real estate, on the other hand, is very different from stocks, you will need a lot more patience. The key to real estate investing is to “buy and hold”.
“Buy and hold”.
In history, real estate always goes up in the long run. The market surely dips here and there, but the long term trend is always up.
Just like how the financial crisis crashed the housing market in 2008, a year after I bought my house, in the long run, it’s actually irrelevant.
I remember when I worked as an engineer, my company gave out stock units regularly as employee benefits. I set an automatic sell at market price whenever the stocks were granted, so I averaged out.
Guess what? I always earned more than my colleagues who tried to time the market.
This is the same strategy I use for my own real estate investments, I buy and I sell, in good markets and in bad markets, so I average out.
So, when is a good time to buy? As long as you have your money ready, any time is a good time to buy.
If not now, when?