Thursday, February 14, 2008

Is it Time?

We all want to buy low and sell high. That is the optium in any kind of of investment strategy. In the real estate market, as like in other markets, it is difficult to predict when the market has peaked and when it has hit bottom. The traditional investment strategy for real estate is long term and hence will weather the highs and lows over time. Buyer's in the real estate market between 2005 and 2006 forgot the fundamentals of real estate investing. We were caught up in the price going up over night and kept on buying over inflating the market. As we all should know what goes up comes down.

Real Estate is a long term investment of five years or more. If you had bought a property on Hilton Head in 2004 and still had it today you would still have a good investment. By 2009 this piece of property should end up being a great investment. Why? You purchased your real estate with the guiding principals of owning the property for a minimum of five years.

So where are we today? We are caught up in the pademonia of the press that the "sky is falling". When in fact the real estate market on Hilton Head is doing fine. We have taken our hit in a price correction and with interest rates at near record lows it is time to start buying. We can never predict that one moment in time that the market has changed, we can only look in the past and see when it changed. Because real estate is a long term investment it does not hurt to be early in a changing market. Time will weather the short term change in market.

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