| 24 March |
The Boston Real Estate Market – Time To Buy Or Sell? |
During the past ten years, the Boston real estate market has followed a similar trend as that of the main US property market and indeed that of the majority of English-speaking countries.
At the beginning of the 2000s there was a prolonged period of rising prices. Many analysts in fact talk about a housing bubble. While the population of Boston was declining, house prices kept on growing at an amazing rate.
Increasing house prices resulted in ever-increasing bond repayments. Boston was no exception to this rule. Soon the average salary earner in this city found himself virtually unable to pay the monthly installments on his mortgage bond.
We all know the rest of the story. Home owners started to miss payments on their home loans and soon banks were repossessing homes at an alarming rate. These houses had to be sold by the banks, and soon the market was in an oversupply situation. This forced sellers to drop their asking prices and it started a spiral of downward price movements.
Does this mean that now is a bad time to invest in a home in the Boston area? Two years ago the answer would no doubt have been yes. At that time businesses and prices were still dropping in real terms and it would have taken a relatively long time before you could recover your investment.
Right now it seems that the market is returning to stability. Prices are no longer decreasing so fast and if the economists are right, the economy will soon pick up again.
The same rules apply to any form of investment, whether it be in real estate or in the stock market. Amateurs lose money on the stock market because they buy high and sell low. The same is true in the housing market.
That is not the way to go about a long term investment, whether it’s in stocks or in real estate. You should ‘buy low and sell high’. Taking into account this little bit of advice, now is very likely a good time to start looking seriously at investing in real estate again.
Right now many experts predict that the property market in Boston is very close to its turning point. Once this happens, prices will initially rise very slowly. With increasing demand, the level of price increases will speed up and things will only start to slow down again once the market gets close to its top turning point. From an investor’s perspective, now is therefore a good time to start investing in Boston real estate again. If you wait to buy until the market is close to the top of the price cycle, it will take many years to make a profit.
A savvy investor doesn’t consider a property investment as a way to make quick money. He knows that it normally takes five to ten years before you show a good profit. An investment in the Boston real estate market is guided by the same principles. Buy now, when prices are rock bottom. Sell five to ten years from now when you are bound to make a substantial profit
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