Monday, August 2, 2010

Is it really possible to "Time the Market " or "The next neighborhood to hit the big time megabucks"?

In this article Frank Borges Llosa discusses the importance of choosing a home or condo to buy based on the neighborhood that you love or that feels right and not on speculation of the future. In choosing a home that you love there is no wrong answer as long as it's something you can afford and what you want because unfortunately, there is no crystal ball.

Debunking the 'timing the market' myth


Is it really possible to predict the next "up-and-coming" neighborhood to buy a house in? Is it reasonable for buyers to expect that a given area will experience home-price appreciation because it is close to a hip and happening area?

That guessing game is probably not worth the gamble, says Frank LLosa, broker at Frankly Realty, in this edition of The Wheel Estate Cam.

Just as with the stock market mantra, says LLosa, "past performance is not indicative of future results."

He adds, "My philosophy has always been: buy where you want to live."

But if the basis for a particular purchase is the prediction that a given neighborhood is going to somehow transform into a pricier neighborhood, he asks, "Is it really worth it?"

And in terms of trying to time the bottom of the housing market, LLosa says that can be a hit or miss proposition, too.

"One of my favorite sayings: 'There's no bell at the bottom of the market.' "



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