Is Now the Worst (or Best) Time to Buy Real Estate?

Everywhere you look, the headlines are saying the same thing: interest rates are up, borrowing costs are high, and maybe now isn’t the time to buy real estate. For physicians and other busy professionals who already feel stretched by student loans, unpredictable schedules, and rising living costs, that message can be discouraging enough to hit the brakes on investing altogether.

But is that really the smartest move? Or could this actually be one of the best opportunities to invest in real estate we’ve seen in years?

The answer isn’t as simple as “rates are high, so don’t buy.” The truth is more nuanced, and if you’re willing to think long-term, there are compelling reasons why real estate still belongs in your wealth-building strategy.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Any investment involves risk, and you should consult your financial advisor, attorney, or CPA before making any investment decisions. Past performance is not indicative of future results. The author and associated entities disclaim any liability for loss incurred as a result of the use of this material or its content.

Putting Today’s Rates in Perspective

First, let’s acknowledge the elephant in the room: yes, mortgage rates are higher than they were just a couple of years ago. During the COVID years, we saw rates dip into the 2–3% range. That was historically unprecedented.

We got spoiled.

Those rates weren’t meant to last forever. They were the result of heavy intervention by the Federal Reserve, and they created a sense that cheap money was the new normal. But if you zoom out and look at the bigger picture, today’s environment doesn’t look so bad.

Veteran loan officer Dan Peck with Movement Mortgage, who has worked on thousands of real estate loans over the last 25 years, put it this way:

“If you go back into the mid-2000s, rates were in the 6% to 7% range, which is where they’re currently at right now, and things were humming along.”

In other words, today’s rates may feel painful compared to yesterday’s bargains, but they’re not historically unusual.

Why Real Estate Still Makes Sense

So why are savvy investors still buying property even in a high-rate environment? Because real estate isn’t just about the interest rate. It’s about the bigger financial picture.

Here are a few of the enduring advantages:

Equity Growth – Even if cash flow is slimmer today, property values tend to rise over time. Holding real estate for 5–10 years or more can lead to significant appreciation.
Tax Benefits – Depreciation, mortgage interest deductions, and other tax strategies can offset income and reduce your overall tax bill.
Inflation Protection – Rents and property values generally rise with inflation, making real estate a natural hedge.
Leverage – You can control a large asset with a relatively small amount of your own money, something you can’t do with stocks or bonds.

As Peck explained:

“I’ve had plenty of investors who initially sat out when rates jumped, only to realize later that they missed out on $30,000–$50,000 in equity gains by waiting.”

That’s the hidden cost of sitting on the sidelines: the money you don’t make while waiting for the “perfect” conditions.

Thinking Long-Term

The investors who get burned are usually the ones with short timelines, trying to buy and flip in six months or speculating on quick appreciation. That’s where higher rates can cut deepest.

But if you’re holding property for the long haul, whether as a rental, second home, or primary residence, the story looks very different.

Peck put it simply:

“If you’re buying property for the long haul, whether it’s a rental or a primary home, you’re typically going to do very, very well with it.”

This is where physicians and other high-income professionals have an advantage. You don’t necessarily need your property to generate maximum cash flow on day one. You have the income stability to weather thinner margins while the property builds equity and appreciation over time.

Rates Will Cycle

One more point worth remembering: rates don’t stay put. They rise and fall, often unpredictably.

“Rates will eventually cycle,” Peck reminded me. “They always do. Now, they might go up more first, but then come back down. You’ll see rates ebb and flow.”

That means buying today doesn’t lock you into today’s rate forever. If rates drop, you can refinance and lower your monthly payments. In the meantime, you’ve been gaining equity and enjoying tax benefits, advantages you’d miss if you stayed on the sidelines.

Reframing How You Run the Numbers

One of the best adjustments you can make in this environment is to rethink how you analyze deals.

Instead of obsessing over interest rates alone, ask:

Does this property make sense as a long-term wealth builder?
Even if cash flow is tight now, does the appreciation potential or location justify the purchase?
Am I factoring in tax advantages when calculating returns?
How does this fit into my overall financial plan, especially as a physician looking to create passive income?

Many investors use “cash-on-cash return” or “cap rate” as their only filters. Those metrics matter, but they’re not the whole story. In times of higher rates, zoom out and consider the total value a property can deliver over a decade or more.

The Physician Angle: Why This Matters Even More for Us

As physicians, we know what it feels like to be stuck in the medical hamster wheel, working long hours, trading time for money, and often feeling like our income and freedom are out of our control. Real estate is one of the most proven paths out of that cycle.

It’s not just about making a return on paper. It’s about building options:

The option to cut back at work without fear.
The option to spend more time with your family.
The option to retire early or pivot into something new.

Yes, interest rates affect the math. But they don’t change the fact that real estate remains one of the best vehicles for financial freedom, especially for physicians.

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Final Thoughts

So, is now the worst or best time to buy real estate?

The answer depends on your mindset. If you’re waiting for a perfect rate environment, you’ll probably wait forever. If you’re willing to think long-term, run your numbers conservatively, and focus on building wealth over decades, not months, you’ll likely look back and be glad you acted now.

Real estate has proven itself across every market cycle. Rates are just one factor, and they will always move. The question isn’t whether you can time them perfectly, it’s whether you’re ready to start building wealth regardless of where they stand today.
Want to dig deeper into this conversation?

Check out PIMD Podcast Episode #277: Should You Still Buy Real Estate with High Interest Rates? featuring Dan Peck of Movement Mortgage.

Were these helpful in any way? Make sure to sign up for the newsletter and join the Passive Income Docs Facebook Group for more physician-tailored content.

Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.