Most people shy away from buying Real Estate in a down market for obvious reasons. However, down markets can offer some of the greatest opportunities for the savvy investor. This is a great time to pick up Property Deals from sellers who want to cash out, thus offering property at a discount. In the words of Warren Buffet ‘Be greedy when people are fearful; be fearful when people are greedy”
Up markets are easy to invest in, so people think. These are ‘ride the wave’ markets and everyone wants to get a piece of the action. Almost anything you buy in these markets can be good as long as the properties are in or around growing centres. However, the savvy investor still applies caution and stealth and buys only the properties with the greatest returns. Once a great property has been found, the Investor moves swiftly and without delay.
Buying in Prime locations is the safest way of investing as these properties tend to hold their value in down markets. However, investing in a Prime Property requires decisiveness and promptness as many Investors are looking for the same property. The investor must move swiftly and without delay on Prime location properties.
Buying along the fringe of Prime locations is one of the best ways of investing in Real Estate. Properties in these locations are generally much cheaper than Prime locations but with great potential for growth. When the boom hits, these areas in time will become Prime and the returns can be enormous if the right property is bought.
A location is usually on an upswing with great growth potential when it is on the fringe of Prime locations, like on the outskirts of a large city. Businesses increasingly move into this location, more shops open up in the commercial areas bringing in wealth. This in turn brings in more families and working class people. Growth in transport arteries like highways, railways, roads are also great indicators.