Ed's Blog

Many clients have come to me recently asking if it is a good time to buy a home. The answer is “YES!” In fact, often the best time to buy a property is when the media has deemed the real estate market “doomed,” “in a downward cycle” or “weak.” But it takes courage and preparation!

The truth is that when everyone is talking about how bad the housing market is, savvy investors are scooping up properties in droves. The reason? Real Estate has always been a sound long term financial investment. As land and properties are limited commodities, by purchasing a property now when prices are so low, you will likely earn a great profit in the long run.

However, the key to success in real estate, and I’ve said over and over again, is to be committed to investing for the long term. Home flipping is not going to be your best strategy. But purchasing a property with the intention to own it for at least five years is a brilliant strategy in today’s market.

Just last week, my advice to potential buyers was echoed in Time Magazine by the respected and famous Peter Lynch, one of the top money managers in the country. Lynch boldly declared that smart investors ignore the headlines. That is, when the headlines are saying what a dismal state the housing market is in, that’s precisely where there is the most money to be made by investors or even first time home buyers. The article seconds that notion by quoting John D. Rockefeller, who encouraged buyers to buy during so-called down markets.

In other articles, Sam Zell and Donald Trump, two of the country’s most famous and successful real estate investors, were quoted as saying that residential real estate is a good buy because of the lower prices we’re seeing.

Consider this: if you’re toying with purchasing a home right now, remember that the abundance of bad news actually presents amazing opportunities for those who seize the day. You will be buying at what will likely be considered bargain prices one day.