It’s possible to make money in real estate when the market is in the toilet, and for one reason.
Real estate prices always increase over time.
Now if you’re talking about Chernobyl it’s a slightly longer time frame, but prices will rebound over time. Typically you’ll find a rebound within a max of 10-20 years, so investing in real estate for your retirement makes perfect sense. You don’t need me to tell you that if you invested in the middle of the Great Depression, or the recession of the 80’s, that property values today are higher than they were back then, and that over the interceding years you’ve outpaced inflation in most areas. The key is:
You need to see consistent positive cash flow.
If you’re seeing money out every month then your mortgage is always being paid, and it gives you the chance to build a solid reserve fund while times are good. Then it gives you the ability to hold it when vacancy goes up, or interest rates go up and money gets tight for your property. Only if you’re able to see cash out of it will you be able to ride out the market cycles and come out on top.
Ditch the day-trade mentality
Investing in real estate is a long term game (by which I mean 5 years and up). Buying a pre-build isn’t an investment. Flipping isn’t an investment. They are speculation. Buying and holding cash-flow positive real estate is an investment. It takes longer to find good properties, and longer to see the fruits of your labour. The rich families out there, the old money families, are often founded on long-term real estate. It’s where the smart money goes.
So don’t waste your time with speculative buying. Stay away from pre-built condos. Don’t buy vacation homes, tropical real estate, or time-shares. Invest with someone who really understands long-term real estate investments and economic fundamentals. Work with a team that understands how to hold a property through a recession. Learn how to profit even when you buy into a declining local market.