You don't have to be extremely wise to see the signs of a global economic collapse. When we look at the corona pandemic, international tensions (think about the trade wars between the USA and China for example) and many other dangerous situations (political and economical), we see the many signs of a global economic depression.
All these tensions make us think: what are safe investments? What kind of investments will stand strong in bad times? And when we consider Real Estate: is it wise to invest in houses at the moment?
The value of houses decreases in times of recession
Unfortunately the value of houses will decrease in economic storms. That's a reason to say: I don't invest in Real Estate as long as there is an economic collapse in sight. That's understandable. But... what will your other investments do in bad times? Will your crypto portfolio survive? Will the dollar survive? (big chance it won't...). Will obligations or stocks survive? (Some will, many won't). So let's face the facts: many "good" investments won't survive or will lose a lot of value during a depression.
Real Estate is still one of the best investments
So why do I think Real Estate is still one of the best investments, even with an economic collapse in sight? Well, take stocks for example: companies may seem strong right now, but how many companies will survive a depression? Not many... But consider owning a (piece of a) home: yes, the property will definitely decrease in value during a recession. Maybe even people won't live in it for a long time, because they won't have the money to rent it, especially when your property is of a more expensive class (that's why I think cheaper houses are a safer investment, because they will still be rented out during a recession). But... sooner or later a recession will end. People are inventive and creative, they will start things up again. And the best of it all... they still have to live in a house! Exactly, they may have to rebuild companies, but they STILL need a house! And when the economy will rise again, your Real Estate investment will also increase in value again.
But why not wait until the recession is over?
It may seem wise to invest AFTER the recession, but tell me: how much money will you have left to invest? When most stocks and companies and maybe your crypto portfolio have collapsed, how much money will there still be? But when you buy NOW and patiently wait until the coming recession is over, your property will automatically increase in value again. So the good news is: when the recession is over you STILL HAVE YOUR INVESTMENTS! The houses won't disappear (as long as there won't be any natural disasters or war). Stocks will. Dollars will. But your Real Estate is still there! What I try to say is: you will have a financial basis after the recession, while many other people will have to start from zero.
You will have a financial basis after the recession, while many other people will have to start from zero
Can you be sure your Real Estate investment will survive? No. Nothing in the financial world is sure. But... Real Estate will still be one of the most safe investments, even when it may decrease in value for a while. But hey, that's my opinion, do your own research. :) Let me know what you think and don't forget to check out my Crypto Real Estate blog!
I wish you safe financial times.
Blog: 'Crypto Real Estate'Interested in buying Real Estate crypto tokens? Visit Realt.co
This article is no professional financial investment advice,I'm only a crypto enthousiast sharing great crypto possibilities...
Always do your own research :)
