I see all the indicators for a real estate crash:
- Runaway inflation of real estate values
- Unprecedented number of “flipping” transactions
- Record low interest rates (inflating housing prices)
What does this mean for you?
Well, if you are lucky enough to own a house that you bought a couple years ago and are considering selling, now is the time!
However, if you do not want to sell your house, you may consider pulling out the equity via a “home equity line of credit” loan (HELOC), or just doing a good old “cash out refinance” since interest rates are low. This will allow you to capitalize on the high real estate market without having to let go of your asset.
On the other hand, if you do not own and are thinking of buying, think again! If you can wait it out for another year or two while continuing to save for a larger down payment, you will be well-positioned to acquire twice the home you could purchase today.
I personally am looking to pull out all the equity I can from my properties via loans while refraining from purchasing new real estate until further notice.
For your reading pleasure…