3 Real Estate Moves You'll Regret Not Making in a Bear Market
Bear markets, which are marked by a drop in values of 20% or more, can happen in the real estate or stock market, temporarily crushing prices. While they are no fun to endure if you're actively invested, they can be a tremendous time to load up on new real estate investments since prices are down.
As a newbie investor in the last major bear market (the Great Recession), I failed to make important investment moves, and I've regretted that terribly.
We're not in a bear market as of yet, but market volatility and downward-trending real estate values have investors worried one could be on the horizon. To avoid being wracked with regret from failing to act, here are three real estate moves you should make when the next bear market comes around.
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1. Buying an income property while real estate is cheap
Rental property can be an incredible long-term investment, one that provides reliable passive income and growth as real estate values increase. Recent real estate values are nearing record levels and have made the last few years a challenging time to buy rental property on the cheap.
Buying property at a lower price increases the chance of a greater return on investment (ROI), increases cash flow, and leaves more wiggle room for rental rate fluctuations, vacancies, or increased expenses over time. A real estate bear market should be a shopping spree.
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