I’ve just been visiting Property Grunt, one of my favorite bloggers, for some answers.
He thinks we haven’t hit it yet.
He’s in Manhattan and I’m in Nashville, so we have two totally different markets. Still both markets have quite a bit in common.
One thing Property Grunt brings out is the unemployment rate
This hits real estate market trends hard because obviously people need an income to be able to stay in their homes.
Still, like Property Grunt and many others I have been listening to are saying, better times are ahead. What does that mean?
Will there be hot prospects in the real estate market? Or will the market linger sideways for a long limbo?
Propety Grunt believes the fall in prices is slowing and so do I.
So does that mean we can plan on a good real estate market + a rebound?
I think so. Property Grunt doesn’t. He thinks it will be sideways.
I think that’s where New York and Nashville are different. Nasvhille has weathered the storm pretty well for the most part- so far. I think it will go up because the area has good employment, many new people moving in, and steady industries. (We’re not all about country music, thank goodness.)
You’re either a buy and hold investor, or you move propeties fast, or perhaps you do a little of both, but you know the pay-offs can be huge. That’s if you know what you’re doing.
But you need to be on the right side of the cycle
A lot of people miss it altogether because they try to buy in a sellers’ market and they try to sell in a buyers market in real estate.
Here is another reason why I think Property Grunt is wrong about the sideways market.
I think everything depends upon what you paid for your properties.
Buy them cheaply enough, and don’t over spend on rehabbing, and your home value appreciation has to go up because you bought in correctly.
For now keep your attention squarely on the goal which is to buy enough properties to become financially secure. That will be a different number for different folks depending upon your market and your temperament.
Markets move in cycles. This current drama will end at some point and soon will be far too easily forgotten by tomorrow’s young investors.