Bad news for everyone: recession is coming back; and it’s coming back soon! Billionares like Sam Zell and George Soros are foreseeing this economic collapse. Meanwhile, newly elect president Trump sees that the next recession “is already here.” The dark days are coming. So how can you protect your self and your 2017 investment property before this wave of darkness hits us all?
There’s always bound to be a silver lining in all this–as grim as that may sound. So, here are 5 way you can get your 2017 investment property ready for the next recession.
Related Article: How to Recession-Proof an Investment Property
1. Sit on your equity!
This is a smart thing to do in a crisis this for your 2017 investment property or properties. By that I mean, don’t splurge. You don’t need to buy a fancy car, for instance. By sitting on your equity you leverage it. Leveraging it allows you to take out a cheap loan for another investment property.
And actually, now is a great time to take a home equity loan–you can take out loans with an interest rate as low as 3%!
2. Take advantage of the plummeting market
In a recession, the market plummets. Perhaps it gruesome to say, but to save your 2017 investment property, take advantage from this. As people will be losing homes, properties can be yours for ridiculously cheap prices. You can make use of that when the market bounces back up–and trust me, it always does–by cashing it in when the value goes back to normal. Plus, you’ll have a great cashflow coming in before you do so anyway.
So, use that money from sitting on your equity and use it in times of recession for your benefit!
3. Take advantage of divorces
This is going to sound even more gruesome than the tip before this one, but to really save your 2017 investment property, keep an eye out for divorces.
Previous recessions have shown us that when the market goes down, divorce rates go up. This makes sense–the economic situation naturally stresses out homes and relationships. When this happens, the assets are split equally creating beautiful opportunities for investors like yourself.
This really does happen–and a lot actually. Earl Antonio Wilson, a Brooklyn-based lawyer have witnessed that in divorces, people tend to liquidate fast just to satisfy court rulings. So, keep an eye for those divorces!
4. Keep an eye out for properties sold after a death
Unfortunately, recession time causes a strain on people. This not only causes more divorces, but even more illnesses and deaths. This makes sense as one is more prone to emotional and mental stress, causing themselves more misery.
It’s a terrible situation, but what does it mean for you 2017 investment property?
With deaths, there’s a lot of emotional and mental strain on the family and people around. There’s also the mess of heirs–so they sell, split, or keep? Funerals aren’t cheap, and usually if the heirs never owned the property, they refrain from keeping it. And so, it goes to the market on a cheaper price.
What you can do is look out for such homes and investment in them to expand your portfolio.
Related Article: How to Value an Investment Property
5. Use low interest rates
You’d think that banks would be weary and less likely to give out money in a plummeting market–but really that’s not the case. To get your 2017 property ready for the next recession, you should invest more (and with the banks’ money) to expand your portfolio.
The reason banks are more willing to give out loans with low interest rates is because the market goes by supply and demand–and the banks need you to make money on their own money. So, keep up your score and take take on your 2017 investment property or properties. You’re gonna find great deals!
A final note…
Keep your chin up in the hard times that may be. Your 2017 investment property (and all your properties for that matter) should be just fine if you follow the five tips above.
Recession times are hard, just keep looking on the bright side and find the silver lining in everything. Before you know it, things will turn up again!
Remember that you can always use Mashvisor to find the perfect 2017 investment property for you.