You may be looking out at the world right now and thinking the last thing you want to do is spend money on non-essentials.
Maybe you prefer to keep it all tucked away in the bank, or in the couch, or perhaps in the burgeoning toilet paper and hand sanitizer markets.
Let me tell you why that thinking could be causing you to miss a huge window of opportunity.
We Lucky Few
If I were to ask you which North American generation in the last century was the luckiest, what would you say?
Would you say kids today have it too easy, thanks to technology and our increasing affluence?
How about baby boomers, who have wielded tremendous societal power since their arrival on the scene?
Well, if you ask historians and demographers, most will pick the so-called ‘Silent Generation’–those born in the late twenties up until the end of World War II.
“But wait,” those of us who know our history would say. “They had to live through World War Two. The ‘30s included the Great Depression. Most of their adult lives were spent in the Cold War. How are they lucky?”
Yes, their childhood years were rough. Some may have lost parents during WWII. But once they got to the other side of 1945, they found themselves in a booming economy with more jobs than people (especially because their generation was so small). They earned the ‘Silent’ moniker by keeping their heads down, working hard, and being careful with their spending.
They got jobs before the economic downturns of the ‘60s. They bought houses before the hyperinflation of the ‘80s. Some retired before 2001 and the rest before 2007, and they benefited from multiple bull markets along the way.
Why am I telling you this story?
If you took away from this that you can never tell what the future holds, you’re partly right.
The full truth of this story is that the market follows patterns and, if you get in at the right time, you can profit. In fact, no matter what time you enter the market, on a long enough timeline you can always make money, particularly in real estate.
Maybe making money is not top of mind for you–you’re just focused on survival right now. But if you can take a deep breath and crystal ball gaze with me for a moment, here’s what I want you to see.
Don’t let your decision making be entirely driven by fear. Crisis and opportunity are two sides of the same coin.
The next few months will provide an excellent window to be buying investment properties, providing you with a stable cash flow that will appreciate in the coming years, and it can also be a good time to sell.
The time is now
As this Forbes editorial puts it, “A property that cash flows today is likely to cash flow during a recession. Even if, on paper, the value of your investment properties drops, if they cash flow positively you’ll emerge from the recession a happy investor.”
Buyers will also benefit from less competition, lower interest rates, and increased demand for rentals as those who have lost income ditch their mortgages.
Likewise, those who choose to sell now can prosper as well. Sellers may benefit from multiple offer situations and less competition due to the reduced number of listings.
You might choose this time to sell your home and purchase something like an income property that you can also live in (such as a duplex) or take advantage of the low interest rates to upgrade to something that will appreciate after the markets settle.
I call this period of time a window because, like a window, it will close. Rock bottom interest rates and economic uncertainty will not last forever.
If you’re bold, creative, and willing to exercise a little vision, please reach out. We’d love to tell you about some of our investment property listings and offer you virtual tours.
And no matter what you decide to do during these difficult times, we hope you stay safe and please obey all government directives aimed at keeping this pandemic from spreading. #FlattenTheCurve