“Don’t worry, soon it’s going to be a buyer’s market.”
“Now’s the time to sell. No doubt about it.”
“The bubble is coming. You just wait.”
Whether you’re new to the world of real estate investing or you’ve done your fair share of deals in the past, you’ve heard it all before, haven’t you?
There’s no denying that the real estate market at large has the potential to be volatile, and those of us who experienced significant bubbles or periods of recession know this all too well. That said, it seems that the more tension in the political and economic climate, the more new investors tend to sweat their investments and opportunities as a result.
Hey, it’s totally fair game to be concerned. Even so, dealing with fresh investments and existing ones alike can be incredibly daunting during volatile markets. As a result, every new investor should consider the following four tips and principles to help keep a level head even when the market seems to be up in the air.
First and foremost, panicking with your investment portfolio of any shape or size is bad news. Just as there’s oftentimes gloom and doom out there concerning the state of real estate, there’s arguably no more tried-and-tested way to grow your wealth in a time-efficient manner. Investors have been navigating tight markets for decades: you can do the same if you keep your cool.
With that in mind, make sure that you take a deep breath before you run the risk of making a bad financial decision. Don’t let personal or market pressure influence your decisions and always sleep on major financial choices rather than do anything rash.
Let Someone Else Do the Legwork
If you’re sweating your investments or aren’t sure which opportunities make sense to you in a volatile market, why not start by getting a second opinion?
Maybe you’re not sure if you’re squeezing the most out of your current investments. Perhaps you’re afraid you’re getting burned by a bigger tax burden than you should be. Either way, learning how to structure your real estate investments almost always boils down to talking to a professional that’s walked the walk.
Taking a total DIY approach to your investments isn’t a wise move for first-timers. If nothing else, speaking to an advisor can provide you with peace of mind during a rough patch.
Throw Perfection Out the Window
Simply put, rarely are you going to find that “perfect” property when the market’s not in the best shape. That doesn’t mean that you should spring for the next fixer-upper or sell your own property at the first sniff of an offer, but rather understand that you may have to make a few sacrifices on your next investment. As long as you’re still within your budget after all is said and done, you’re golden.
Don’t Stop Looking for New Opportunities
Conventional wisdom would tell us that a down market would be the time to stop looking for new investment opportunities, right? Not necessarily.
House-hunting during a recession is like an art form in and of itself. From spotting serial reductions to knowing how to negotiate with realtors, savvy investors can do well for themselves if they know what to look out for on the market.
The common trait among most successful real estate investors is the ability to keep one’s cool. Rather than assume that an uncertain market should paralyze your portfolio, consider how you can move forward with your investments even when the market isn’t ideal.