Talk of recession has been in the air for years. Since the housing bubble in 2008, people have been cautiously skirting around the idea that another recession is inevitable, and they aren’t wrong. Anytime that we see a spike in the economy, it eventually has to dip down again and when unprepared, this means a recession. So you may be asking yourself, “is now an okay time to invest in a multi-family property?”. The answer is yes.
Asset Prices Drop
The biggest reason that you should invest in multi-family properties with a potential recession approaching is because the prices of properties will drop. That may seem bad to you right now, but when you are looking at the big picture, this means that you can acquire more properties with less capital. We will see a rise in add-value properties on the market, and as we acquire them and give them the attention that they need, we will also see an increase of value to our investment portfolios.
Increase of Renters
Forbes recently published an article about why you should invest in apartments in a recession, and we think that they are spot on. The essence of their article pointed out that while we are building up our portfolio of multi-family properties, the need for such properties also rises. Instead of buying, people will choose renting in favor of something smaller, more manageable, and with less risk, causing the need for rental properties to rise, and resulting in our filling up units quickly and keeping them full for the duration. Statistically, once an individual begins renting, they are likely to continue renting for extended periods of time, at least until the next big life change shifts them towards home-ownership. In the midst of a recession, this period of time could be years as people feel more secure with less commitment, and enjoy the ability to walk away from what could be a huge expense.
Here at Magnolia Capital Properties, we are committed to the long term protection of your assets. We are committed to properly managing each asset in order to keep you secure and benefiting in all aspects of your multi-family investments. Delivering and managing investments in real property will help investors achieve financial independence and generate a long term passive wealth strategy. We like B & C class assets because they are predictable. They have the ability to add and hold value in the long term. Our goal is to obtain properties and bring them up to a higher class quickly so that they start working for you as quickly as possible. If you are an investor looking to start investing, contact us today! Magnolia Capital Properties is here to build long term relationships with interested investors. So if you are looking to invest in multi-family properties that can grow in value, head to our contact page and fill out the contact form so that we can start investing with you today!
