Time to Buy a 2nd Home or Investment?
IS IT TIME TO BUY THAT INVESTMENT PROPERTY OR SECOND HOME?
“Right now is the best time in the history of the modern world to buy real estate!” Who said that? Certainly someone with a motive: seeking more commissions or fees, increase readership, more “likes,” additional “followers” or simply looking for an “atta boy/girl” from the boss. Whatever their motivation is people are saying it – often and LOUD.
Are we at the bottom? If I had a crystal ball, I would be able to answer that question. Unfortunately, I do not and neither do all the prognosticators. What I can say is if you are, in fact, waiting for the bottom you are going to miss it. Market timing is impossible. What I can also tell you is that in my adult life I have never experienced a better time to buy real estate. The long term interest rates are fluctuating at all-time or near all-time lows, there is a surplus of properties in and coming into the marketplace and values are significantly lower than they have been in recent years.
You may be one of the lucky ones out there who is sitting on an abundance of cash. Maybe you are a little hesitant to jump back into the stock market. If you have ever thought about investing in real estate or buying that vacation home, it is now time. Here are a few things to think about:
As I mentioned, there is an abundance of property on the market and in most cases these properties have an element of distress. This is something to embrace; not to be afraid. Due to the situation you are more likely going to need to act quickly. You will be competing with other like minded folks and speed usually wins. It may be speed of submitting your offer or the speed at which you can close. If you are paying cash – be liquid. If you require financing – be pre-approved with a lender capable of lending you funds for this type of property.
If you are looking for a multi-family in a specific town, wait for it. Don’t start looking at condominiums in another town. You have a plan, stick with it. If you want to be in a certain price range, stay in that price range. Your professional real estate agent will find you what you are looking for.
You may not see what you looking for right away. The property is out there. If it’s not on the market right now, it will be soon. Don’t compromise.
Enlist the services of a professional real estate agent that understands your goals. Also, engage a real estate attorney that understands real estate investor law and the specifics to what you are looking to do. Not all attorneys understand the intricacies of a distressed property.
Before you enter your specific market, understand that market. What are the recent sales prices of properties similar to the ones you want? Understand the difference between a short sale, an REO/bank owned property and an estate owned property.
Stay focused. You may get outbid on a property that you wanted. Real estate investors are not emotional people. Move on. There will be another one and more than likely better…
Good Luck and Happy Hunting!
Mark D. Stiles, Esq.
STILES & ASSOCIATES, LLC
892 Plain Street, 2nd Floor | Marshfield, MA 02050
Phone: 781.319.1900 x14 | Fax: 781.319.1919
111 Beach Street, 1st Floor | Boston, MA 02111
If you have ANY questions about the information provided in this blog please feel free to contact Mark directly.