When to Invest?

The question always comes up.
It doesn't matter if it's a "First Time Home Buyer",
or the "Wanna-Be Investor" it's always the same question.
"When is the right time to buy?"

But hey, it also comes in the form of a definite thought or statement.
"I'll buy when the market hits bottom."

Either way, question or statement, it comes down to WHEN?

When should you enter the market?
Guess what my take on this is?
That's right, it is always a great time to start investing!

Sounds like a sales pitch right?
It's not. The true investor always wants to be in the game.
Here's why...

There is always value in the market, though some times it is harder to find that value than other times. There is always a house or building that has not been taken care of properly, with motivated sellers. These are great properties to buy, just about anytime. More importantly, the real estate market is cyclical. Predicting cycles can some times be like predicting the weather. Since many of the greatest economists cannot seem to do either, it is not worth trying to jump in at the trough and get out at the peak. If anyone tells you differently, ask them if they have any swamp land they can sell you as well.

Buy and hold investors almost always make money because of the nature of real estate price increases. Even if you get in at a peak and hold, real estate typically comes back to bail the hold investor out. Established investors who only work in certain markets have even more of an advantage because they have seen peaks and valleys. They can read signs much better and know when it’s a great time to buy. Better still, they know what properties to buy because they are so familiar with the hot (and cold) spots in the area.

It's also important to consider the market when you decide on property types.
A quick example will make this clear: If you only invest in apartment buildings, then you want to watch out for housing prices and interest rates in your area. If rates get low and prices are still reasonable, people will flock from apartments to houses, leaving you with high vacancy. Doing some easy math (Net Operating Income falls) will show you that prices of apartments buildings will decline. Once this happens however, it might be a good time to buy apartment buildings. Why? Inevitably, housing prices will begin to rise and price people out of the market. As new home buyers enter the market, they will not be able to afford homes, but might be willing to settle for an apartment while they save.

It's the old supply and demand, ebb and flow all again.

So when?
Now!
(after you do your homework - right?)