You’re probably aware that the housing market isn’t doing well. On the surface, it seems like it could turn around. However, it’s not going to be what it was. There are too many delinquent mortgages for the market to see a full or smooth recovery.
However, not all investors will be adversely affected. There have always been invjfestors who make it through depressions and recessions. Since experts predict that the U.S. is headed for a recession, here are some investment strategies that can help.
1. Work with a property management company
Property managers are incredibly valuable assets. As a main frunction, property managers take on landlord duties for investors so they can focus on other things. Since the pandemic hit in 2020, they’ve also been handling unprecedented difficult situations with unpaid rent and evictions.
When you work with a property management company, you’ll have an entire team of experts to handle everything from tenant screening to repairs and maintenance. You won’t have to worry about your tenants because they’ll be in good hands.
If you don’t have anyone in mind yet, make sure you connect with a reliable team of experts. Get a free property analysis from Green Residential to learn more about how property management services can benefit your Katy investments.
2. Invest in a duplex
In just about any market, duplexes are a good investment. If the U.S. moves into a recession, they’ll still be a good investment.
· Duplexes are fairly easy to sell. If your strategy is to buy and resell, you’ll make good money on a duplex.
· We could be moving into a buyer’s market. Financial experts predict that home prices will soon drop, and we’ll see more distressed property sales in 2021. If 2021 turns out to be a buyer’s market, you could find some pretty sweet deals. However, some experts disagree and believe home prices will continue to rise.
The reality will probably be somewhere in the middle, with an initial onslaught of distressed property sales right before prices increase.
· You can buy a duplex with an FHA loan. Normally, Real Estate Investment loans are for homeowners and not investors. There is an exception for duplexes if you live in one side for a certain period of time.
If the worst-case scenario financial recession hits and you can’t rent out your duplex, you can use the space for yourself or your friends and family. You can live in one unit and turn the other side into a home office or a living space for your relatives.
Whether you’re an experienced investor or new to the game, you can’t go wrong with buying a duplex.
3. Invest locally
With travel restrictions getting narrower and more complicated, it will be in your best interest to invest locally. Although travel is a concern, there are other reasons to buy local properties.
Many Real Estate Investment experts have named cities in the greater Houston area one of the best places to invest in property. This means you’ve got competition from out of the area and possibly even out of state.
Before you invest in property elsewhere, look locally first. Pursue investment opportunities in Katy to make your life easier and to get a jump on the competition.
4. Plan on investing in foreclosures
The U.S. is going to see a massive increase in foreclosures a short time after the eviction moratoriums end. Many renters can’t pay the rent and an alarmingly high number of investors can’t pay mortgages. It’s only a matter of time before those properties go into foreclosure.
Fool.com reported that in October 2020, 4.57% of all residential mortgages were at least 90 days delinquent. That’s around 2.25 million homes. There were an additional 202,000 homes in forbearance set to expire sometime in November 2020.
Plan to invest in foreclosures in the near future. You won’t find many opportunities at the moment, but nobody can escape the effects when the eviction moratoriums are lifted.
5. Sell properties that won’t do well in a recession
Some properties just won’t do well in a recession. For example, if businesses can’t afford to operate out of a building, owning certain types of commercial property won’t be beneficial.
Combined with potential future lockdowns and limited capacity requirements, you may want to consider selling your commercial Real Estate Investment before things get worse. However, it would be wise to hang onto commercial properties that are rented by essential services.
Be prepared for anything
Cut your losses now and keep your risk low. Although experts predict a recession, it’s hard to estimate exactly how it will play out. All we know is the recession is coming – so plan ahead to protect your investments.
Take advantage of Facebook, Twitter, Instagram, and more, where users can disclose your exciting posts and deals. And also use real estate flyer templates to post on your social media pages. Make sure to take a look at PhotoADKing’s real estate agent flyer designs that will help you give an extra competitive edge in the market