when to invest in real estate

Is A Recession Coming And Should You Be Worried?

How Can You As An Investor Respond To A Possible Recession?
Among the many questions that I’ve been getting recently at our seminars and from our clients is about recession. “Is a recession coming?” It’s boom time so the apprehension is that a bust will follow. Historically as well, we’ve seen this happen more than once. It happened during the early 90s when there was a downturn in the economy lasting a few years. And, of course, we all remember how the boom times of 2006-07 were followed by the recession of 2008, which lasted several years. So are we looking at yet another recession now?

There are similarities in both periods.

In the late 80s as well as around 2006-07, we saw some great boom times right before the economy experienced significant recessions. The real estate sector really suffered during the 2008 recession as well. We have come to expect this recurring boom-bust kind of cycle in the economy. We are experiencing something of a boom in the real estate sector right now as well.
If you’re someone looking to invest in real estate, you’ve probably been asked to get on a waiting list because the demand is high and supply is comparatively low. The prices of building supplies are also going through the roof. In spite of higher prices though, people are still flocking in to buy real estate. If lots of people are looking to buy, that means it’s boom time now and recession will follow, right? This is the general understanding of the situation, but it isn’t necessarily the case.

There are also significant differences between both periods.

Things are actually different right now in 2021 than they were in 2008. Though property prices are high and building materials prices – lumber for instance – are also high and rising, there is no real cause for worry. Right now, there has been no precipitating factor such as the subprime crisis that we saw around 2008. At the time, lending was indiscriminate. Practically anyone could get loans and often they would receive 100% of the purchase price or even more as the loan amount. There were other reasons that accelerated the crash at the time, as I explain in this podcast.
However, things are different today. With the moratorium on mortgage payments during the pandemic now coming to an end, people are afraid of foreclosures. However, most lenders are willing to tack on the forbearance amount to the end of the loan for no extra charge. There is no crisis of the sort we’ve seen in the past. We have rebounded from the pandemic lockdown pretty well! Also, the regulatory oversight is better and loans are much more difficult to get. For one, we now have in place the Frank Dodd Rules. 
So I doubt we’re going to repeat a crisis like we had in 2008. Yes, the craziness, the boom, will subside, but I don’t think it will go into a recession. For a more detailed analysis, check out this episode.

How to Identify the Right Time to Invest In Real Estate

When is too early to start investing in my future? Am I really ready to start investing in real estate? Do I have the time and the experience to do it? What if I make a mistake? 
These are some of the questions I am asked all the time by potential clients. There are some who are hesitant about taking the plunge, so to speak, while others have a spouse or a family member who is averse to the idea. So how do you get around that? When should you start investing and how to know if you are truly ready for it? Find out here.

Investing doesn’t need you to be an expert.

Much of the hesitancy comes from diffidence and a simple lack of experience. People believe that one has to be really clued into the real estate scene to make informed choices and decisions. They also – erroneously – believe that as a homeowner they have to be hands on and that this will take up a lot of time. Fortunately, these are all misconceptions. You don’t need to be an expert and nor do you need to invest a lot of time and effort into your real estate investment. Check out this short video where I crunch a few numbers and explain the Fannie Mae rules among other things.
At ICG we offer expert guidance for you – whether you want to buy one or one hundred homes. We put you in touch with developers, reliable property managers and guide you through the loan process. At no extra cost to you, you have access to our carefully cultivated network of professionals who will save you time and help to safeguard your investment. So really, when you think about it, investing in real estate is not at all the daunting proposition that many think of it as.

You are never too young to start investing in your future.

For those who think they are too young to start investing for their retirement, let me disabuse them of the notion. The fact is, one is never too young to start investing in one’s future and financial security. It is also never too late! I have had people in their 20s and 30s approach me for real estate investments, and I have also had people start investing in their 60s and 70s!
Still have doubts? Are you wondering if you are financially ready to make the commitment? Or perhaps you are sure and a spouse or other family member is the one that needs some convincing? Well this is also something that I frequently help people out with. Check out this short episode where I answer some of the questions I am frequently asked. I explain how to take the next step towards your future financial security, and how you can ensure that you make the best choices for yourself and your family.