Real Estate Market Timing
If you're thinking about getting into the market – whether in real estate, stocks, or another investment asset. Market timing is essentially an investment strategy in which a market investor attempts to beat the market by purchasing at a low point and then selling at a high.
No one wants to buy a property, see its value drop, and then wait some years for the market to rise again. However, one of the benefits of real estate investing is that the market does tend to go back up. Of course, it's best to buy low and sell high in an ideal world. If only we all had a crystal ball.
If you’re a stock market day trader, buying low and selling high has to be your strategy. But if you're looking for a long-term, more secure hold with stable appreciation, waiting for the perfect moment to enter the market may not be the best strategy. Unfortunately, we see investors miss outstanding opportunities almost every day while holding onto this mentality.
United States Housing Market
Let’s take, for example, the United States’ current housing market. Property values are still growing at incredible rates despite rising interest rates, and the average home price is currently the highest on record. 2021 saw many buyers purposefully sitting on the sidelines, waiting for the bubble to burst or a dip in the market. Neither of these ever came, and it doesn't look like it will happen this year either.
These potential investors and homeowners have missed out on incredible home equity growth by not diving confidently into the real estate market months ago. The US national average home price growth reached an astonishing 18.8% in 2021. If you purchased a property at the beginning of the year with only 3.5% down, you could very likely be ready to refinance with over 20% equity to eliminate your LMI payment.
One of the benefits of real estate investing, as opposed to the stock market, is that you're investing in a hard asset that should have significant cash-flow potential. Depending on a property's lease structure and terms, income properties can have excellent cash flow even during economic downturns. Real estate also tends to appreciate during times of inflation, making it a nearly incomparable hedge against inflation.
Whether you’re looking to invest in a home, investment property, syndication, or REIT, waiting on market timing could lead to lost profits or the market walking away from you entirely, making it harder for you to invest. Given the 2021 housing market example, a price that seemed high in January 2021 would likely be viewed as a screaming deal today. It’s easy to see how some buyers were pushed out of the market due to
When investment assets are carefully selected based on data-proven strategies and with emerging trends in mind, Axis Income Fund sources and offers incredible investment opportunities, no matter the market conditions.
If you're considering investing in real estate with long-term appreciation, cash flow, and wealth creation in mind, the time is not when the market cools (if it does). The time is now. Despite rising interest rates and geopolitical conditions, the real estate market will remain strong, with most sectors and areas continuing their upward trajectory.
Carefully selected properties and investment assets will have excellent long-term returns, and market timing shouldn't be an investor's top priority.
