
Real Estate – Buy Low and Sell High
There are always stories of smart investors who take advantage of the downturns in real estate cycles, downturns in the stock markets, or overall downturns in the economy. While some people ‘hunker down’ or even panic during the difficult periods, others look for opportunities, or specifically wait for the opportunity cycle to come, as it has now.
While one of the mantras of investing is to ‘Buy Low-Sell High’, this doesn’t always work out, does it? What we inevitably see is this: when something is ‘hot’ (like home rentals or condos recently), everyone rushes in to buy, but when it drops or freezes up, everyone panics and sells (or tries to sell). Often we ‘Buy High – Sell Low’, and that is a pity. Of course, when it comes to the realty world, an added culprit has been financing. Some investors over-financed, or when everything else in their portfolio and …