When to invest: Boom market or down market?

 

It’s actually safer to invest during down markets than boom markets. That doesn’t mean you cannot profit from a booming market, but you have to be more careful and very clear about your financial holding power, investment term and exit strategy. As a savvy investor in a boom market, it is highly recommended to have a medium-term plan wherever possible if you’re buying – because any long-term plan may not be in line with the natural course of market cycles. You might suddenly find the capital you’re investing is subject to completely different market conditions – because a booming market is bound to calm down at some point. Nevertheless, if you have solid financial holding power, so you’re not under pressure to ‘fire-sell’, you can play the long game and exit at the best point in the market cycle. Whatever comes down is also bound to go up again, and the general graph of any real estate market over a long period is always up. Good timing and understanding of the real estate cycle is vital to maximise your return on investment: it’s all part of The Art of Real Estate: https://booksarabia.com/the-art-of-real-estate-investment-from-entry-to-exit.html



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