“Real Estate is cyclical and will ALWAYS be cyclical”. Marvin H., Austin Real Estate Investor
Today there was a big discussion in my weekly real estate networking group about price increases in Austin and if the rental price increases were moving up as much as the sales. The discussion led to how to protect yourself from a downturn in the rental market. Marvin couldn’t have said it better.
That got me thinking, yet again, about this shift in the market. I’m seeing a lot more new real estate investors at our weekly meetings. The confidence about real estate as an investment is increasing and more people are peeking outside of the curtains, wondering if investing in real estate makes sense.
Now that Austin is continuing to grow, announcements of companies moving into the area, it’s pretty clear that according to the law of supply and demand, that prices will increase. But what will happen in 5 years? What happens when the hedge funds stop artificially inflating the market pricing and start selling all that inventory? What if <insert concern here>? Like Marvin said, real estate is cyclical and will always be cyclical. The best thing you can do is to stay educated to the current demands in the market, be willing to adapt to differing strategies, and know that the market WILL change.