Buy Low Sell High

Wednesday Oct 17th, 2018


I love the idea of buying low and selling high. After the fact, many investors using this strategy haveclaimed to have made Fortunes. They then turn around and say I bought low and sold High. It is a great concept which after the fact means nothing. If I had a crystal ball I would buy penny stocks and sell them a week later and never have to work again. I really like that idea. Reality is that the higher the return, the higher the risk. Most people who buy low and try to sell high in a short period of time will lose most of their money. Now let's look at real estate investing. I am often as a question about timing. Is now a good time to sell? I say yes, but then also add what are your objectives? if a person is going to make a lateral move, meaning move from one house to something in the same price range..... just maybe in a different neighborhood then any time is a good time to sell or buy. If instead a person has a second home, they can time the market a lot better. Unfortunately in lateral moves they buy low and sell low. if they sell high they have to buy something else and they buy high.

This week I read the Royal  Lepage report which said that house prices fell for the third quarter in a row. This quarter there was a 2.2% decline in house prices. Those sellers who remember the market last year are in a bit of a pinch. They think that their house is worth more than people are willing to pay. The opportunity exist now  for first time buyers who could buy property at a lower price. There is also good opportunity for flippers who just want to buy something renovated and possibly rent it out or sell when the market goes up again in 6 months. An opportunity also exists for those who are looking to retire into condo living. For them it is the best opportunity to find the retirement condo while they are still working, rent it to keep costs low and find financing at affordable rates. When the market is high in a few years, they can sell their current home and move into their condo.   For everybody else, do not lose sleep it is what it is and as long as we have good health and a roof over our heads we will be okay
Allan Hassoun
Royal Lepage Credit Valley Realty
Direct: 905-452-2186

At Royal Lepage helping is what I do!

visit my website:

Tags: real estate

Post a comment