Should You Be Waiting for The Next Housing Crash Before Investing in Real Estate?

Before we even get started we thought we should just say — this article should not be used as a substitute for competent legal, financial and/or other advice from a licensed professional.

That out of the way, let’s get started.

We’ve done a lot of reading and there are many different opinions on the topic. The problem stems from the fact no one can know the future.

The questions then are as follows: should you be investing in a property right now? Or should you be marshaling your resources to jump in at the next downturn?

The first thing we have to acknowledge is that house prices are cyclical and follow a boom and bust pattern (at least historically). As demand increases, prices rise with them. At the same time demand increases which drives new development. An increase in available property relieves the pressure of demand which causes the house prices to fall again.

Various geographic, political, and economic issues also affect housing prices.

When people think of the next market crash though, they are often referring to a repeat of the financial crisis in 2008 where the global economy collapsed, largely due to ludicrous lending by banks.

In response to this, house prices plummeted. We think it’s worth pointing out that after the 2008 financial crisis, new regulations were quickly put in place to stop that from recurring…