You want to invest in real estate when the stakes are low and the likelihood of a profit is high. The market is always changing, but do you know when it’s the right time to invest?
A good rule to follow is that if you have the money to invest and can make the monthly payments, then this is a great time to buy a rental home. Home prices are low during this second quarter of 2020, but how low they get will depend on the state of the stock market, economy and other factors.
Just like at any time, you need to ask yourself a few questions before you buy, such as:
- Will this property appreciate over time?
- Will this property help produce a positive cash flow (if you intend to rent it)?
- Is this property in a good rental market (if you intend to rent it)?
- Can you afford it?
If you can positively answer those questions at any time, then it’s a good time to buy a rental property. If you aren’t sure of the answer or don’t know if you want to commit to the purchase, then it’s not the right time.
Investing in real estate should not be a gamble. It takes time and research to find the right real estate to buy. You should still be going to look at homes and getting inspections. You still want to focus on getting a great, protective contract and making sure the property is in good shape.
Now could be a great time to buy while home prices are low, but remember to do your due diligence, so you can see a profit now and in the future.