3 Reasons To NOT Buy In a Down Market

Let's talk about three reasons why you should NOT buy a property in a down market. First, if you're considering buying a property for a short period of time, meaning two years or less, it may not be ideal because the market may go down and it would be worth less than what you paid for it. So don't consider anything short term in a down market.

The next thing or the next reason you shouldn't buy is if you already own a property and you relatively like your property, it's just one or two things that are missing that you were considering buying another and then maybe stay there and fix yours up. I run into people who say, Well, we want to sell our home and go buy another with a pool.

We'll, consider staying in your current property and adding that pool. Sometimes even we just need an extra bedroom look into maybe adding a bedroom or adding some additional square footage would be might be a better investment than selling your property with a low interest rate today and moving forward and buying something else with a higher interest rate. The last reason you absolutely should not buy a property in a down market is you're a head case.

And what I mean by that is I run across people all the time who say I only want to buy at the bottom of the market. I'm going to buy when we hit the bottom. And the reality is, you know, the last real estate cycle when we hit the bottom in March 2009, only 2700 people actually bought a property during that month and at the bottom.

But the reality is there are millions of homeowners who have made a ton of equity and a lot of money out of real estate, even though they didn't buy in that one month. I personally bought a property in a down market and today it's worth three times what I paid for it. And I have a tremendous amount of positive cash flow rental income, which I would have never had if I hadn't bought in a down market.