hen is the best time to dramatic upward or downward
buy real estate? When swings (bubbles or crashes).
buying real estate for
investment, smart money does not If you are investing in real
buy at, or near, the top of the estate for a relatively short
market. Smart money buys real term gain (such as 3-7 years) and
estate at, or near, the bottom of you buy at or near the top you
the market. could see the value of your real
estate go down and you would
Historically, real estate often historically have to wait
runs in cycles of approximately approximately 7-10 years to see
7-10 years. Real estate often it regain its value and/or
goes up (sometimes dramatically) establish new highs. If, on the
for several years, tops out, goes other hand, you are buying real
down for several years, hits estate to hold it for a long
bottom and then starts going up period of time (such as 20 years
again, beginning another 7-10 or more) you need not generally
year cycle. It's a bell curve be overly concerned with these up
(shaped like a hill). And, when and down 7-10 year cycles.
you are considering investing in
real estate, you can simply And when it comes to highly
figure out where you are on that volatile New York or California
7-10 year bell curve and that can real estate all normal timing and
tell you in what direction real logic goes out the window!
estate values are likely to go,
and for how long. For real estate investment
timing:
note: this is the average
historical method and does not 1. try to buy at the low end of
take into account prolonged or the current 7-10 year cycle
getting out takes t-i-m-e
2. try to sell at the high end of
the 7-10 year cycle 5. in a real estate bubble or
crash it's better to be safe than
3. if you are in the wrong part sorry
of the current 7-10 year cycle,
and can wait, a little patience 6. New York and California real
can pay off handsomely estate often does not conform to
the typical cycle (and thus may
4. real estate is not a highly defy timing as well as logic!)
liquid investment; getting in and
About the Author:
Alan Korber is a real estate investor with over 25 years of professional experience who wisely diversifies into other investments. He is also the creator and publisher of the Korber Strategy, a simple and successful stock market investment strategy which can produce annualized returns of 50%-100%. His website is http://akorber.r8.org
Source: www.isnare.com
