It is during or after a recession when smart people and those with cash look to make their biggest gains and if you have liquid cash or assets which can be liquidated then now may very well be a good time to do just that in anticipation of what 2021 is going to bring. We are going through a crazy time right now with CoVid-19 and governments all over the world are doing their best to prop up businesses and citizens in the wake of a financial meltdown. This is going to result in many opportunities for investors, in particular in the real estate market. Residential investment properties in particular are going to provide a great opportunity and here is exactly why.
There is absolutely no question that we can expect a recession of sorts following the pandemic and that is because governments are going to need to get back the money that they have been investing, money which they have borrowed. The result of this is going to be higher interest rates as well as the raiding of pension pots and private funds and that is going to result in the real estate market taking a hit in terms of values. This is going to drive down the cost of so many markets and that is the perfect time for investors with cash to strike.
Sadly this is a situation which has negatively affected so many and as unemployment figures rise and businesses are forced to close their doors, people will have to make tough choices regarding where they live. Many will struggle mortgage and rental payments and we can expect to see something of a race to the bottom in terms of people looking to downsize. Mid range properties are going to be the ideal place for investors to place their cash after this as they are going to be popular in the rental market when things pick back up again.
There are also going to be some people out there who are looking to get rid of a second home because they need those funds and this could very easily result in a desperate sell where they are willing to discount the price of the property for a quick sale. Whilst the 2008 financial crisis was very different from the one which we are going through at the moment, this was something which we saw a great deal of as people were looking to make sure that they could stay afloat.
The point of all of this is that if you have liquid capital then it would be a very smart idea to sit on it and wait to see what happens in the real estate market in the coming months and years because all the indications suggest that there could be some fantastic opportunities which are going to present themselves within this sector.
Hold tight, do your research and jump onto an opportunity when you see one.