Thats right, by the time it feels OK to buy a Boston Condo or a Boston Home (most of which are condos) you have missed the bottom. Its not easy to make money in real estate. You make money in real estate when you buy, not when you sell. So you have to buy right and that means its going to feel risky.
When I was a stock trader we used to say “You gotta buy them when they hate them”. In other words buy stocks and real estate when everyone else is terrified. This risk is what you get paid for in the end.
I have an anecdote, I know a teacher who bought a Commonwealth Avenue building in 1973 for 165K. At the time he was making $12,000 per year and he confessed to being scared to death that the tenants wouldn’t pay their rent. Now if you remember 1973, there was nothing reassuring about the economy. We were in recession, we had gas lines and unemployment was high. So he bought this building in the middle of a bad economy with an energy crisis going on.
This building is now worth $5,000,000+
Opportunity for making money in real estate comes disguised as risk.
Another anecdote, I have friend who bought a home in Chestnut Hill Newton in 1980 for 200K. Again this guy was nervous as this seemed like a high price for the property at the time. He swallowed his fear and bought anyway.
Three years ago he sold his Chestnut Hill home for 2.4 Million.
There are no guarantees but the successful real estate investors feel the fear and buy it anyway.They deserve to make the money because the had the courage to invest during the bleakest times.
Is Now The Best Time?
If that was easy to answer where would the risk be? Most folks wait until we have consensus and will pay more than when the market is at its lowest. If most buyers thought this is the best time to buy we would have bidding wars going on. I am very careful about making market predictions and I won’t make one now. Those who have been reading this blog know that my years in the stock market cured me of that particular ego trip.
Written by Jeff Persons ABR 617-512-3443
What do you think?
Your comments would be appreciated!
More Articles by Jeff Persons ABR:
What is the Stock Market Telling Us About the Real Estate Market?
How to Get the Lowest Prices on Real Estate by Buying in the Winter
Forget The Boston Real Estate Market, Buy The Boston Home You Can Live With
A Buyers Agent List of 5 Mission Critical Items to Check Before Buying a Condo
Return To WeSellBoston.Net
If You Wait For The All Clear Signal To Buy Your Boston Home You Missed the Bottom of the Boston Real Estate Market by About Six Months
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Well, I think you’re right. Just as they say “The rich get richer, and the poor get poorer.”…this market can be a prime opportunity for those who are still rolling steady in our economy. Prices dip, and you’re going to see all-time lows on everything from flat-screen TV’s to yachts! Boston Real Estate holds it’s own very nicely, so if there is a time to buy, it’s probably right now.
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