Jennifer asked, is it still a good time to buy real estate? Here is my answer, YES! But, there are some things to consider.
Speaker 1: Welcome to the real investing show with Tim heritage each day, we’ll provide real investing for everyday investors. Tim is a nationally recognized real estate investing expert podcast, host and public speaker. He built his businesses from the ground up and is here to help you do the same. Here is your host Tim heritage.
Speaker 2: Welcome to the real investing show on Tim heritage today. We’re gonna be talking about, is it a good time to buy? We’re not. So you’ll notice we’ve changed formats a little bit. This is going to be a daily short form podcast [00:00:30] that is designed to answer your questions in real estate investing. It was encouraged by my wife, Jennifer, and, uh, the background is a lot of people contact me on a weekly basis offering to pick my brain over lunch. Um, <laugh> and I’ve gotten to where I, my reply is always a bit of a joke. It’s I have lunch basically, meaning I, I don’t need you to buy me lunch. And a lot of times I don’t have time to buy lunch, to go sit and eat lunch or go meet people. Cause I live out, you know, kind of far outside of the city.
Speaker 2: So she heard me say that a couple times. She said, well, that [00:01:00] sounds kind of rude. And I said, yeah, I know, but you know, it, it just, it is what it is. And she said, well, look, you like to help people. You like to answer their questions. Why don’t you take the questions via email and then just answer the questions on a daily basis. And I thought, well, that sounds like a good idea. And I can do that, you know, from my pajamas, if I won’t, so here we are, we’ll get started. So the first question she asked me actually was in the kitchen the other day, she said, is it a, still a good time by investment property? And when you think about that question in general, the answer is always yes. If you intend [00:01:30] to own it long enough, that’s, that’s the, the short version of the answer.
Speaker 2: But in general, what I’m telling people, if you’re flipping properties right now, it, it, it’s still a great time to buy. I just think you should focus on, uh, first time home buyer type houses, entry level houses, houses that are at, or below the median home price for the area. Because if you get too far above that into kind of luxury or discretionary type houses, while you’re flipping, those are the ones that [00:02:00] would or will suffer in a downturn or a recession. So no one has a crystal ball. Is there, is there a recession coming or not? No one really knows, but, uh, we are seeing consumer spending on discretionary items reduce. So people are buying less vacation homes. There’s a lot of vacation homes that Jennifer and I have been looking at over the last couple years that we’re seeing, you know, five and 10% price reductions.
Speaker 2: So I would say if you’re in that market, like we are then yeah, maybe a great time to buy a vacation home, [00:02:30] um, may not be a great time to sell a vacation home. But, uh, yeah, I mean, so if you’re flipping and you’re in a, uh, market that has plenty of jobs and you’re in a market that has, uh, plenty of demand and you’re in a market that has a low supply threshold, then I, I think it’s a great time to flip, but I always look at you, look at the housing stock and you figure out where the people that live there or buy there, get their money. If it’s someone that is going to be heavily invested in stocks in the equities market, you know that market’s hurting right now, it’s up 1% down, 1%, another day [00:03:00] up 2%, one day down 5% the next day.
Speaker 2: It, it it’s, it’s quite volatile. And, and in times of volatility, specifically in the equities markets, in the stock market, higher end homes, discretionary homes, vacation homes tend to take a beat, take a pause if you will. So I think it’s still a great time to flip. As long as you’re flipping in the right area, it’s still a great time to buy and hold as long as you have the right capital stack. Right? So if you’re buying right now and you’re planning to hold for, let’s [00:03:30] call it five to 10 years, then I, I think it’s a great time to buy. I mean, the math is there’s. We need like 5 million homes in the United States now, and every day there’s more people. So <laugh>, it’s, uh, it, it it’s, we’ve got a severe housing shortage. So I don’t think anytime soon we’re going to have an oversupply of homes and it would take an oversupply of homes to make it where I felt like it wasn’t a good time to buy investment properties.
Speaker 2: So you’ll hear me [00:04:00] say it a lot at the end of the day, you know, the three basic necessities alive for food, water, and shelter. And, um, I don’t wanna be a farmer. I don’t know how to make money off of water, but I get shelter and our government has shown over and over again that even in times of great despair, as recent as 2020, that they’re gonna step in and pay for people’s shelter because you, you don’t want a hundred million homeless people on the streets. So is it a good time to buy? Is the question by Jennifer? I would say yes and no, depending on your strategy and depending on the location that you’re buying at. So, um, it’s always a [00:04:30] good, the, the old saying is, uh, you never wait to buy real estate. You buy real estate and wait. And I think that still holds true, no matter what the recessionary environment is or is not in the United States, the rest of this year. So that’s it. If you have any questions you’d like me to cover on one of these shows, hop on, I have lunch, money.com. Submit your question and I’ll read it out and answer your question. Thanks for stopping by. We’ll see you tomorrow.
Speaker 1: Thank you for hanging out with us today on real investing. If you have questions, comments, or feedback, please visitIHaveLunchMoney.com. [00:05:00] Tim. Can’t wait to hear from you. We’re always grateful for your reviews. And if you enjoy this episode, please subscribe and share it with your friends. Remember the business is the vehicle, not the dream. See you. Next time. The proceeding program is provided for general education purposes only and does not constitute legal tax, financial investment or other professional advice. No information contained in this program should be construed as financial investment or legal advice from any individual author of post or guest. You should always consult a financial advisor before investing.