Moshie Horn in Real Estate, Business Principal • Apple Peach Holdings Jan 28, 2020 · 1 min read · +100

Should You Wait for a Market Crash to Invest?

Should You Wait for a Market Crash to Invest?

Investing in real estate can be very profitable. People that have the money to get into the housing market should definitely look at what is available. The key to this is finding those great deals during a housing market crash.


Crash Market


The housing market changes with time. There are times where it is a buyer's market and other times where it is a seller's market. There are also times where the interest for a home will much lower. All of this means that it is going to be better to buy during a market crash because this could easily result in more profits.


Upside Down Mortgages


When there is a market crash people are going to find themselves losing money. They may be in a position where their mortgage is upside down. This means that they may owe more on the home than it is actually worth. These are going to be homeowners that tend to abandon their homes if they lose their jobs. These foreclosures lead to possibilities to get homes that are still in good condition during a market crash. That is where a great amount of profit can be made when it comes to real estate.


Realizing What Market Crash Does


During a market crash there will be reductions in force. There will be jobs that are lost. There will be homes that are simply abandoned because people cannot afford these homes. It tends to have a domino effect. Investors that have been patiently waiting for this now have opportunities that they did not have before. They may be able to get as many as three or four homes during the market crash when they may have only been able to afford one during more stable times.


Perspectives


There are investors that consistently invest regardless of what the market is doing. It is fine to have investments in real estate during more stable times. It helps, however, to change your perspective and see how much more can be saved on the purchase of homes when the market has crashed.


Investors that are into real estate are getting into this because they want to make a profit. Their profits can be accelerated when homes are purchased at much lower prices.