A recession is defined as a significant decline in economic activity spread across the economy, lasting more than a few months. Even though we are in the throes of a recession right now, that doesn't mean that real estate investing has to come to a screeching halt. In fact, there are some very compelling reasons why you should continue to invest in real estate during this time.
1. More Motivated Sellers
In a recession, there are typically more motivated sellers. This could be because they've lost their job and can no longer afford the mortgage payments, or they may have inherited a property that they can't afford to keep up with. Whatever the reason, there will always be investors who are willing to buy their property for a fair price.
2. Lower Prices
Investors can take advantage of lower prices during a recession. Property values will typically go down when the economy weakens, so it's a good time to buy if you're looking for a bargain. Just be sure to do your due diligence before making any investment decisions.
3. More Rental Properties Available
There is usually an increase in the number of rental properties available during a recession as people lose their homes to foreclosure or decide to downsize to save money. This provides investors with the perfect opportunity to buy and hold onto these properties for the long term.
While there are certainly risks involved with investing in real estate during a recession, there are also some very rewarding opportunities. By being strategic and taking advantage of motivated sellers, lower prices, and increased rental availability, you can make some very lucrative investments that will set you up for success in the long run.