WHEN IS THE RIGHT TIME TO BUY REAL ESTATE?

Everyone says that now isn’t the time to buy real estate.  For the residential purchaser they cannot afford the payments because the prices are still high, and the interest rates have yet to come down so they cannot afford the payments.  And they aren’t wrong, but they may not be right either.  And for the investor, the commercial market is made up of professionals, real estate professionals, who know what’s happening, but they cannot do anything about it yet.  The prices have remained high, and the interest rates are as high for them as for the residential buyers, but they have something that the residential buyers do not have…

The residential buyer is the novice in the group and the younger or unseasoned buyer is buying on instinct.  They do not have the ability to make the payments now because of the prices and the interest rates but they feel, because they are somewhat younger, that their plight in life will get better with better jobs and with “seasoning”.  But they also feel that the prices will continue to go up and, if they do not buy now or soon, that they will never be able to afford a home of their own.  The seasoned real estate buyer, who has bought before and feels that he or she knows what to do may be being priced right out of the market at the moment, but they do not have the hope that the novice has.

BUT the commercial buyer has something that neither of the residential buyers do and that is reserves!!!  Where the residential buyer buys on emotion, the commercial buyer buys on NUMBERS.  And the commercial buyer also has reserves and that’s the essential ability to be able to ride out the high mortgage payments out because of the high prices and the high interest rates.  That’s where guys like me come onto the scene.  My 50 years’ experience as a Certified Public Accountant and my years dealing in real estate both as a CPA and a Realtor don’t look at emotion.  I care about the bottom line!!!  As I have said so many times, either a deal pencils out or it doesn’t.  The numbers don’t lie unless you want them to!!!

My name is Paul Levine, and you can call me at (818) 298 – 4000 after 10 AM Pacific Time Monday through Friday, and yes, even on the weekends.  Or you can send an email to me at “PLevine@lspropertypartnersllc.com” and I will always try to answer you in a timely manner.  I am the Managing Member of LS PROPERTY PARTNERS LLC and, with my partner, Fred Sams, we can help you make it through the complicated issue of Income Taxes like no one else can and, with our years of experience, we can help you make the right decision!!!

I WOULD LIKE TO WISH ALL OF YOU A HAPPY AND HEALTHY THANKSGIVING HOLIDAY!!!