Real Estate Investing: When is it Time to Buy or Sell?
AdminPublished Date: 2014-10-30
When is real estate investing the right decision for you and for the market and would a corporate rental property be a good idea? I was meeting with my financial advisor this week and we were discussing "Dollar Cost Averaging". According to Wikipedia "Dollar cost averaging (DCA) is an investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By dividing the total sum to be invested in the market (e.g. $100,000) into equal amounts put into the market at regular intervals (e.g. $1000 over 100 weeks), DCA reduces the risk of incurring a substantial loss resulting from investing the entire "lump sum" just before a fall in the market. Dollar cost averaging is not always the most profitable way to invest a large sum, but it minimizes downside risk." I know DCA makes sense, but is it an approach to be applied to real estate? YES! If I look back over my 20 years of real estate investing my biggest successes were all about market timing, but did I really know that when I bought? No, not really :) My challenge today is more about adjusting my expectations because not all real estate purchases can be as good as my best ones. However, if I sit on the sidelines too long and don't keep investing I will have no financial successes at all.