Real estate is like the economy. The economy? It’s like the weather. We have warm seasons, we have cold ones. Some seasons are unseasonably hot and others: unseasonably cold. As we come out of the most recent downturn and start assessing what happened, what went wrong, what went right – one thing is for certain: rental properties survived the storms. For investors who want cash-flow, the recession has been a fine time to invest in real estate. Why? Some real bargains have come up. First time home buying rates went down. More people rented. Hipster’s bottom line? Buy and hold investing is a great way to recession-proof your portfolio.
Rental Properties Are Like Fine Art: Buy & Hold For True Appreciation
In a recession, property is still property. The longer you hold on to something, the more it’s worth: this adage usually rings true. Look at fine art. Antiques. Classic cars. Your career, even.There are lots of different ways to invest. When you buy and hold (and take care of your properties), appreciation almost always follows. Even if the market takes a dip, it will come rise again. Do your due diligence and investigate the property, look into the future as best you can (be sure no major employers are on the rocks and there aren’t any big highways coming behind your property), and your property will appreciate over time.
Rental Properties Are Like Vending Machines: Put Something In, Get Something Back
In a recession, cash rules the roost. Rental properties give you a monthly return for your investment dollars. When you pay a bit more for a turnkey that’s ready to rent, you start getting cash-flow right away. Hipster likes the cash-flow approach to investing because it means the cash starts flowing right away. You don’t need to keep putting more and more money into a property, or wait for a buyer to come along (while footing a big monthly mortgage or tax bill) – you just turn the key, find a tenant and start depositing your cash returns in the bank account.
Rental Properties Are Like Water: Always Essential
Rental properties are like water. Why? They’re essential to life. Food, shelter, water. Many people, especially in a recession, simply can’t purchase a property. They need to rent. Rental properties fill a real need. When you take care of your property, you’ll always have a steady flow of tenants. Recession? You’ve got renters. Booming economy? You’ve got renters renting for more $. Either way, it’s a win-win.
We’re coming out of a recession, and as the sun comes out – rental properties still shine (regardless of the economic conditions). If you want to recession-proof your portfolio, rental properties can deliver the results you want for your future.