3 a. Cold Market - Hot Market

What is a Hot Market? A hot market is a market that has a lot of activity. Things happen fast and hence the source of the name - a hot market.
In a hot market, assets are quickly hijacked. When there is a good asset then the property will not remain in the market for long and in addition it is not uncommon for such an asset to end up selling at a higher price than the asking price.
A cold market, unlike a hot market, is a market where almost nothing happens. There is no activity and hence its name - cold market.
In the cold market, assets remain on average for a long time in the market. There are relatively many good properties and the buyers can be very selective and lower the asking price

When we want to buy a long-term investment property, we prefer a cold market as we will then be able to find good properties at a good price. At the same time, remember that realizing the property will not be easy.
Flip property, on the other hand, is preferable to buying in a hot market as we want to get rid of the property as soon as we finish the renovation.
It is very important to identify the market we work in and to choose a region to decide which market we prefer, hot or cold

Login to a site with a username or social media


Forgot your details?

account creation