Most people who understand real estate will agree that buying a house during a recession can lead to finding a diamond in the rough. The recession of 2008 led to one of the steepest declines in the housing market in modern day history. As a result, real estate investors and average ordinary people were able to benefit from the extremely low housing prices that were never before and seen in our time.
Cheaper homes during a recession.
Home prices are normally cheaper during a recession. When a recession hits our economy, it causes job loss for individuals which leads to consumers’ inability to maintain their existing homes or even purchase new homes. What everyone wants to know now is will the housing market crumble again?
With the mortgage rates being historically low and the looming recession that is being predicted, now may be a good time to saddle up and be prepared just in case. A recession is definitely a great time to buy a primary home. It is also an excellent way to purchase rental properties.
Building a real estate portfolio.
Purchasing a home during a recession is an excellent way to build an extensive real estate portfolio. Why buy one cheap house when you can by 10? Building a real estate portfolio is a great way to build passive income and put your retirement income in overdrive. Not only is it a great retirement strategy, real estate can be a wonderful hedge against inflation. With the historically low interest rates, you can get a low mortgage and make a boatload of money. Imagine having a $500 mortgage with PITI and a tenant paying $1,200 in monthly rents. Now multiply that by 10. Get the picture?
For the right investor, a recession can also lead to multiple incentives. There are some companies that are offering potential home buyers up to $5,000 in free smart house technology when you purchase a home.
For the right investor, buying a home during a recession is a goldmine. It is a way for them to purchase real estate at dirt cheap prices and capitalize on monthly residual income by building an extensive real estate portfolio. Purchasing a home at extremely low prices also gives real estate investors the benefit of value appreciation. Real estate investors can utilize real estate as a means to build a sizable net worth.