Today we are going to talk about some reasons why you should look to real estate as an investment in your financial future, why real estate investing during a recession is looked at as safe and stable, and how you can get your piece of this metaphorical investment pie.
The COVID-19 pandemic continues to impact our economy which was already headed for a recession without the help of a difficult virus. Not every industry is impacted, however, millions of people now find themselves (hopefully temporarily) without an income and without a safety net.
This recession has put a lot of strain on all of us, however, it has also provided a reason for many of us to invest and hedge our money and bets on something a little more concrete and stable. More than ever, we are beginning to see the value of planning ahead, diversifying, and having multiple sources of income, which makes the topic of real estate investing very important and shines a light on the kind of value real estate professionals can add to our financial well-being (www.aminvali.com).
Investors have time and time again looked to real estate as a sound investment, especially when the stock market is headed for a nosedive or is volatile. After the housing bubble of 2008 many people (and investors) assume that a recession causes property prices to fall or remain stagnant. However, the fact of the matter is, that the 2008 bubble was the exception and not the rule. If we look at it historically, during several of the last few recessions property prices went up, not down.
There are a lot of reasons why investing in real estate, specifically during a recession, can be a smart move. The three biggest reasons being that rental properties produce a stable monthly income, real estate is not nearly as sensitive to instability in the country/world (since it is not tied to consumer/shareholder/stakeholder confidence) and a well chosen piece of real estate could be more profitable than stocks and bonds.
In conclusion, your next best step is talk to an actual person with experience in investments (www.aminvali.com) and find out if real estate investing is a good option for you.
In future posts we will do a breakdown of each of these reasons and explain exactly what we mean and why it’s important for you to know.