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Why you should buy property in a recession

 

Contrary to popular opinion, a recession is actually the BEST time to invest in revenue properties. Why? Regardless of market conditions people always need a place to live, and with a recessions lower prices, you've got the perfect money-making opportunity!

The first thing to keep in mind is that real estate in a recession is a long-term investment, as opposed to the short-term "flipping" of boom times. Plan on keeping the property for 2-5 years and watching its value grow steadily. Be sure it's in an area where people want to live and accessible to amenities like schools, shops and transit. Don't buy the most expensive building on a modest street; instead buy a modest building on an expensive street. This will make your property more desirable to a greater number of tenants, thus, they'll be willing pay higher rents and you're more likely to have positive cash flow after expenses.

The key to a successful revenue property investment is making sure the numbers work. As your mortgage advisor, I can provide no-charge advice and assistance. I may be able to access the equity in your current home and/or arrange affordable financing through my stable of specialized lenders. By keeping your interest costs and payments low, we can help ensure that your rents will cover the mortgage. Then as your property appreciates, we can extract further equity so you can make a second investment. Talk to me today!

Your trusted mortgage advisor,

Jeff Kerwin

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