Many people have heard about dollar cost averaging. It is technique where one invests a set amount at regular intervals. Typically, this takes the form of stocks or bonds. For example, one might invest $100 monthly in an S & P 500 index fund. When the fund is up, the $100 buys less shares and when the fund is down, more shares are purchased. Over time, this lowers the overall cost basis of the shares.
But, how many actually invest in real estate in this fashion. One of the things we have tried to do is to purchase a single family home for investment, on average, once each year. Then, when the real estate market is strong, one pays a higher price, but when real estate softens, we can get more for our money. Of course, in central Indiana where there wasn't a huge real estate bubble, it may not make much of a difference. But I believe this can be a potentially useful technique for those who want to buy and hold for investment purposes.
On a side note: I want to thank everyone so far for their support of my blogs so far. Currently, there are two, and I hope to announce some new blogs with specific themes in the near future.
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