Maybe Timing Is Everything
A new statistical study out on the periodic ups and downs of home real estate cycles offers some insights into timing, lengths of ownership and rates of return on housing investments.
It makes a strong argument for timing in terms of when you buy and sell your property. For example, if you buy at the top of an inflation cycle as a speculator and sell into an economic down cycle a couple of years later, you will probably suffer a significant loss. However, if you buy a house and live in it for 5, 7, or 10 years, the odds are good that you will probably come out ahead.
The study was conducted by Mark Milner, the chief risk officer for PMI Mortgage Insurance Co. Based on historical data, he found that from 1996 to 2000, buyers who sold their houses within five years of purchase had a 1 in 20 chance of losing money on their investment, with annualized losses averaging 10%. From 1986 to 2005, 99.6 percent of home buyers who held on to their houses for at least 10 years made money.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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