Should you invest in Real Estate during a recession and while interest rates are increasing?

Carin Astrup and CA Estates discussing investing in real estate during a recession and while interest rates are increasing

Investing in property during a recession and while interest rates are increasing can be a great opportunity for real estate investors, as there are several advantages to buying property during this time. One advantage is that when people are unable to get mortgages, they are more likely to rent, which increases the demand for rental properties. Investors can demand higher rent payments and more guarantees from tenants, as well as have more control over who they rent to.

Furthermore, during a recession, bargains may be easier to find as people are hesitant to invest and prices may be lower. Real estate has proven to be a stable investment over time, and prices will likely increase again when the market improves. However, it is important to study the property markets carefully in the areas that you wish to invest in, particularly in areas where vacancy is very low.

 

In Marbella, for example, the rental demand is high and vacancy is low, making it an attractive area for investment and rental. However, this may not be the case in other areas, so it is important to do thorough research before making any investment decisions.

It is also worth noting that during a recession, both primary and secondary home markets may be affected, so investors should be cautious and not assume that all areas will have the same opportunities. Nonetheless, investing in property during a recession and while interest rates are increasing can be a great opportunity for real estate investors who want to invest in rental properties.

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