More and more experts are adding to the forecast that an economic recession will soon occur in the United States, even as the country’s Federal Reserve (Fed, for its short form in English) has already admitted that it will. Very likely to happen. In fact, he estimated it would last about two years, but warned it would not be a very deep crisis. Be that as it may, concerns are intensifying around this situation and the unknown is engulfing many Americans. One is how prudent it would be to buy a home when an economic downturn hits.
To answer, a study by GoBanking Rates indicated that 90% of Americans do not believe that investing in real estate is a good idea when an economic downturn hits. While there are experts who say that this time of crisis should be taken advantage of, there are others who think otherwise.
Those who are in favor say that there are certain truths associated with the purchase of real estate:
-People will always need a place to live and in an economic downturn, the real estate market outperforms other industries
-Prices may be more favorable, indicating that you will make a bigger profit in the long run
Real estate represents cash flow and is accessible
Now, on the other side of the coin, according to experts interviewed by Go Banking Rates, there are some disadvantages of buying property during an economic downturn:
Economic downturn gives uncertain returns
-The requirements for obtaining any type of loan are usually complex
-There is a lot of competition in the market and there is also a lot of demand especially in the main cities of USA
The conclusion is that everything will depend on each case, because for some people it will bring benefits, which they know how to take advantage of, while for others, there are more disadvantages, which will only worsen the amount of money that will reach them.
