Investors often ask us about the best time to buy an investment property in the Tampa market. The perfect time would be at the bottom of the market, but it’s difficult to get the timing exactly right.
Real estate moves slower than stocks. When everyone else is selling out to pull the cash from their homes and their investment portfolios, a brave investor will keep their properties through all the ups and downs that come with the market.
The Right Time to Buy is Any Time
At Hoffman Realty, we are professional property managers in Tampa, but we’re also investors ourselves. We’ve been buying and renting out properties before we were even a business. For over 30 years, we’ve been investing in Tampa properties, and we’ve seen the market at its height and its lowest level.
After all this time of investing on our own and helping others to invest in rental property, we have come to see that the best time to buy is really any time.
In the Tampa Bay area, there are cycles of growth as well as contractions that demonstrates the Tampa real estate market is pretty strong. Values tend to double every 10 years. That’s a pretty good indicator that you’re going to make money on your investment no matter when you buy.
Whenever You Buy, Buy to Hold
Peter Lynch at Fidelity Investments said that your time in the market is better than timing the market. This means that whether you buy during a strong real estate market or a slow real estate market, the best way to maximize that investment is by holding onto your asset as long as possible.
It’s often attractive to buy and flip. The idea of making a lot of quick cash is appealing. But, it doesn’t always work out the way you expect it to, and if your strategy is focused instead on buying a stable rental property, keeping it occupied by great tenants for five or 10 years or even longer, and then even paying off the mortgage to earn cash every month while the home appreciates – you’re in a strong and enviable position.
Buy When Everyone is Selling
MaryAnn always says “you make your money when you buy and not when you sell.”
Those are important words to live by when you’re investing in rental properties. If everyone else is buying, you’re not going to make a ton of money right away. But, if no one is buying and you’re acquiring everything you can, you’re going to be in great shape as the market begins to rebound.
Think about financing as well. Now, it’s a great time to buy because financing is available and easy to come by. It’s worth taking advantage of interest rates and inventory.
If you’re thinking about buying Tampa rental properties, contact us at Hoffman Realty. We have a lot of local market experience and we’ve been buying, selling, and renting for decades. It would be a privilege to help you with your own investment goals.