If you’ve been reading the REMarketStats Blog, you know that I’ve been saying that real estate timing is more important than real estate location. This is contrary to what you’ve probably always heard. After all the golden rule of real estate has always been location, location, location.
So why would I say that real estate timing is more important? Let’s take a look at it. If you buy a house at the bottom of the market and then sell it to someone else near the top of the market, are you both making the same amount of money? Of course not. You will be the person who makes the money, but the person who bought it might actually lose money when the market shifts. Did the location of the house change?
No. The house is still located in the exact same place.
The location had nothing whatsoever to do with the amount of money you and the future buyer made. The real estate timing is what changed. After all you both bought the exact same house, just at different times.
That is why I say real estate timing is so much more important than real estate location. If you time your real estate investing to buy at the bottom of a market that is about to go back up you are going to make a whole lot more money in real estate than if you buy a property just because it seems like it’s in a good neighborhood.
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