Quote:
Originally Posted by CoryHolmes
Like any opportunity, it's a gamble. Sometimes you win, sometimes not. I'm very concerned about the markets correcting themselves quickly, so I'm still content to sit on the sidelines for now and keep to my nice condo already  |
Corrections only cause issues if:
1. The correction is such that the property falls below the mortgage on it currently
2. The correction is such that a short-term reseller loses their bottom line and doesn't want to hold
For longer term investors though, a correction isn't an issue, just really tweaks timing. For example, for me, if the market corrected the condos dropped by even 50% of current, I would still make money because I bought long ago and low enough.
For someone else, say a newer buyer into Park Avenue or even this, if a correction happens, as long as #1 doesn't happen which causes banks to flip, you would just have to wait. Every market eventually corrects the other way and starts to increase again.
Phoenix for example, hard hit in 2009, is back to where it was at the crash and in some locations properties are above now. So even the most drastic drops over the long term, just due to inflation, will increase.
You are right though, it is a gamble but so is the stock market.
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