Buying real estate is widely considered a safe investment compared to other popular investments. However it has highs and lows too, like every other market. The right time to invest in real estate is by looking at the history. For example, from 1988 to 1994 the prices went ten times higher and the market was at full swing. While in 2002, there was seen a massive reduction in the price hikes. Though the returns are mostly positive. Predictions regarding the buying and selling of property may not work always.

Secure property in hands leads to peace in mind. The cardinal rule of real estate is, one’s first investment should be in one’s own home. Not limiting to residential properties, you can also invest in office spaces, towers, markets etc. Instead of being totally tied to your own income, you can also avail traditional commercial real estate loan.

We now have an ease of researching properties online and the ability to get rent checks direct-deposited electronically, thus there are far fewer headaches. You should not put all the savings into one or two properties, but in a diverse field. Investment involves financial planning and strategy. Rental yield, which is the amount of rent paid per annum over the cost of buying a property, is also a factor that determines the level of demand, for both end users and investors.

Certain factors need to be kept in mind to know whether it’s a good time to buy/sell for home owners:

Time Horizon to Stay

How long do you plan to live in or own the home? Job security, pursuing education or a career change can be big influences. A longer time frame gives more opportunity to realize price appreciation on the home, to offset any transactional costs.

Funds to Pay

Upfront costs include the down payment and closing costs, but money should also be set aside for an emergency fund or post-transaction cash. If you don’t have enough money, meeting a financial planner could help.

Buyer’s Interest

There is always an end user interest, but what buyers wait for is reasonable and affordable price. Affordability is also affected by interest rate or increase in income.

Get a Better Bargain

Smart people buy when the market is weak and sell in higher prices. But the buyers should always bargain hard for a better price. Experts recommend opting for under-construction flats over ready procession ones, as the discounts on the former go up significantly.

Real estate is a good, long term investment. Be sure to review your specific situation with subject matter experts to see if you are well-positioned to buy a home.

If you do decide to invest, meet with a trusted local real estate agent who can help you navigate the ever changing landscape of the real estate market. They often know when properties are about to go on the market and may have a lead on a short sale property that can be a great buy.