Buy properties when the recession hits or now?
If you think it’s better to buy properties when the recession hits instead of now, we have some news that may surprise you – we have already been in a recession for the past 24 months.
Prices have hit the bottom.
Nathan believes that property prices have already dropped as low as they will go in this cycle.
The market peaked in 2016, and prices have fallen up until June 2019.
The writing was on the wall.
Nathan has been warning about this recession for some time now, yet many people out there are only just starting to take him seriously.
He received a lot of anger from his peers in the property industry because of his warnings – they thought he was trying to kill the market – but he was just being factual about what was happening in the monetary system.
Is the next boom around the corner?
Nathan doesn’t think so. He thinks it may be 24 months before the market really starts to pick up again.
Why 24 months? Nathan has done a fair bit of research in order to come up with this number. His calculations are based on the amount of liquidity in the financial system and the level of stimulus/quantitative easing needed to fix this problem.
He says, during the next two years, negative interest rates will stimulate spending while lending will be made easier. More liquidity will be poured into the system which will help to prop up the market.
Watch out for the stock market.
He also says that the stock market is about to get hit hard. When this happens, investors will take their money out of stocks and look for somewhere else to park it. Property has often been seen as a safe haven for investors during times of stock market uncertainty.
Nathan believes this recession is just the starting point and that we are actually heading into a depression. This is why stimulus will have to be brought in – it will be the superman of the economy that will help to kick-start the next cycle of growth.
Here’s a very important question to ask.
Rather than worrying about whether prices will drop further if you wait to buy properties, Nathan says a more important question to ask is whether you can access liquidity during this market.
If you are building a property portfolio now before prices start to rise again, can you get the funding you need to make it happen?
When it comes to investing, a holistic approach is always better, says Nathan. Rather than seeing things purely from a property-based perspective, it really pays to look at the monetary system as a whole, and act according to broader economic movements.
If you need help deciding what to do next, Nathan says the team at Binvested are only a phone call or email away.
Have you had trouble accessing finance during this market? Please share your experiences in the comments section below.