Real Estate Timing - when to buy, sell, hold

  When is the best time to buy real estate? When buying real estate for investment, smart money does not buy at, or near, the top of the market. Smart money buys real estate at, or near, the bottom of the market.

Historically, real estate often runs in cycles of approximately 7-10 years. Real estate often goes up (sometimes dramatically) for several years, tops out, goes down for several years, hits bottom and then starts going up again, beginning another 7-10 year cycle. It's a bell curve (shaped like a hill). And, when you are considering investing in real estate, you can simply figure out where you are on that 7-10 year bell curve and that can tell you in what direction real estate values are likely to go, and for how long.

note: this is the average historical method and does not take into account prolonged or dramatic upward or downward swings (bubbles or crashes).

If you are investing in real estate for a relatively short term gain (such as 3-7 years) and you buy at or near the top you could see the value of your real estate go down and you would historically have to wait approximately 7-10 years to see it regain its value and/or establish new highs. If, on the other hand, you are buying real estate to hold it for a long period of time (such as 20 years or more) you need not generally be overly concerned with these up and down 7-10 year cycles.

And when it comes to highly volatile New York or California real estate all normal timing and logic goes out the window!

For real estate investment timing:

1. try to buy at the low end of the current 7-10 year cycle

2. try to sell at the high end of the 7-10 year cycle

3. if you are in the wrong part of the current 7-10 year cycle, and can wait, a little patience can pay off handsomely

4. real estate is not a highly liquid investment; getting in and getting out takes t-i-m-e

5. in a real estate bubble or crash it's better to be safe than sorry

6. New York and California real estate often does not conform to the typical cycle (and thus may defy timing as well as logic!)
About the Author

Alan Korber is a real estate investor with over 25 years of professional experience who wisely diversifies into other investments. He is also the creator and publisher of the Korber Strategy, a simple and successful stock market investment strategy which can produce annualized returns of 50%-100%. His website is http://akorber.r8.org

 Alan Korber

More Articles 

Ten Ways Of Financing Real Estate - Steve Gillman
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? Well, you can still do that, but there are many more options now. Here are ten of them. 1. Gifting...

Naples and Southwest Florida Real Estate Is Hot! - Scott Berry
There has never been a better time to Invest in Naples and Southwest Florida Real Estate! Collier County is ranked number one, and Lee County ranked number two in the entire State of Florida in Existing home (re-sales) sales ending February...

Creative Real Estate Financing - Steve Gillman
Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative...

How Can the Average Person Build Wealth in Real Estate? - Dan Auito
Books on real estate are a dime a dozen—and most focus on taking advantage of someone else’s misfortune. They frequently describe lofty methods for buying and selling properties no ordinary citizen can be successful using. Real estate...

Negotiating the Real Estate Contract - Roselind Hejl
Negotiation is the process of communication back and forth in order to reach a joint agreement. There is no "one size fits all" strategy of negotiating a real estate contract. Many of our clients have been very experienced negotiators, and we...

Real Estate You Need to Know: Forms of Ownership - Thomas Kinsey Schneider Ph D
In this brief article I explain forms of ownership, that is, how you present to the world the fact that you own real property. Forms of ownership have a direct impact on your tax burden, on how you extract money from the deal, and how you...

How To Find a Real Estate Agent - Alex Fir
You may be of the opinion that you don’t need a real estate agent and that using one will add to the cost of buying your new home. The fact is that a real estate agent’s fees are typically paid by the seller of the home. So, as a buyer, you can...

What do you need to know about real estate - Mansi Gupta
An estate agent is one who is involved in the sale of houses and land. The job of estate agent is not new. But with a rise in population, the task of estate agent has gained momentum. With increasing number of people there are more houses and...

Real Estate Investment Opportunities in the Czech Republic - Rhiannon Williamson
Of all of the countries to join the European Union back in 2004 the Czech Republic has benefited most from its membership; and the country's economy has gone from strength to strength as a direct result. The increasing wealth of the nation...

Finding A Capable Agent To Meet Your Real Estate Needs - W Troy Swezey
Whether you’re a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real estate agent can alleviate many of your concerns and ensure a smooth transaction. A...

Real Estate Investing and Goal Setting - David Neese
What is the primary reason for success most people have that seems to elude unsuccessful people? Goal setting is the primary reason for success. Lack of proper planning is the number one reason for failure. Proper goal setting involves setting...

How To Become A Savvy Real Estate Investor - Jamie Madison
If you’ve turned on the television lately, at some point you'll hear the experts praising the virtues of diversification. Real estate has long been considered a conservative, long-term strategy to growing wealth. While some seasoned real estate...