Racing Under a Yellow Flag
First Time Buyers
October 11th, 2008
Racing fans have all heard the term “Racing back to the yellow flag”. This was the practice of taking advantage of a caution flag to pass other drivers who backed off during a wreck on the track. Many a race was won by drivers who accelerated when everyone else was braking. What does that have to do with real estate you ask? Well………..everything!
With all the uncertainty of our economy most people have “hit the brakes” and are taking a yellow flag approach to their finances. Nothing wrong with that I suppose. In fact, that is probably a reasonably safe way to make sure that you fall behind at the same rate as everyone else. Hold your position and when things turn around you might be right back where you were a year or two ago. If that’s where you want to be then its a great strategy.
There is another option. Right now may be the best opportunity you will ever have to leap frog ahead in life. The uncertain economy has forced housing prices dramatically lower and buyer competition has been significantly reduced. Because of this you are in position to make a move that would place you far ahead when the economy turns back around. For first time buyers this truly may be the chance of a lifetime. Some will hit the brakes and some will hit the gas. Which one will you be?
