Should you invest in property during a recession

The short answer is… you should always be looking to invest, be it property or any other investment. Looking for a good investment though is different to finding and investing.

Why should you be investing during an investment

Ultimately you are looking at the best way to invest your capital for the best return. So if the right deal comes along and you can get a better yield than your standard bank interest rate or any other kind of investment, then you should still invest.

Overtaking inflation

You don’t just want to keep your capital investing to keep up with inflation, but you want to overtake inflation rates, and having your capital in a standard savings account will not likely do this during a recession.

Don’t’ wait for the bottom of the market

If you are waiting for the bottom of the market, you may never find it, and if you find a good deal and decide to wait, then there is a good chance you will miss it completely, especially if you have already compared dozens of property deals.

How to invest during a recession

As properties can be quite versatile in terms of what level of deal you can find, you can essentially get deals at any point, no matter what is happening in the market. If we found a good deal tomorrow, then we would invest. However, we would also look at other options.

Look to invest at whatever is going to give you the best returns for the climate, or whatever suits your lifestyle. Whilst still balancing the risk level you are willing to take. Other options could be Bonds, commodities, stocks or saving accounts.

Key steps we take before investing in a recession

1. Constantly look for a good property deal, and don’t lower expectations just because they may be harder to find.

2. Look at all possible investment assets from bonds, stock properties commodities etc…

3. Weight up your own level of risks, and what you want from the investment.

4. Don’t wait for the market to do anything. Although, you may invest more when the market is in a better scenario or interest rates are better, ultimately it comes down to how much money you can make. Someone may need to sell assets cheap and fast in a recession, so be in a place to take advantage.

5. At Fabrik we look to using cash to pay off mortgage debts, so seriously look at investing in cash, as mortgage rates will get expensive with a recession.