Recession Proof Property Investing
This almost seems like a misnomer. How can property investors recession proof their investments? I have been through 3 real estate recessions( probably the last one a depression). Properties fell dramatically. Many property investors were wiped out. The ironic thing so many of them thought that property was safe. Today I see many investors with adjustable variable rates enjoying the low rates. They do not believe it could be possible that interest rates could rise to double digits. I have learned anything can and will happen.
So this comes back how to recession proof our property investments. First of all, these are my personal thoughts not written in stone nor are they investment advice. I can only share what myself and my Joint venture partners are doing.
- Leverage is virtually non existent
- We look to buy below market and create both Social Housing HMOs which are on a guaranteed rents, no voids, no management and we create Professional HMOs. Professional HMOs cash flow much higher than buy to let. Even in a recession people have to live. They want to live in nice properties in good areas. Plus living in a HMO with all bills is much cheaper than living in a flat. Plus they have company. There is no shortage of people in need in which the govt supports. In a recession there will be probably more. Myself and my Joint venture partners receive a BACS payment monthly from the contract holder in the Northwest.
- We are looking to build affordable housing. I did this in the US for 10 years. Affordable is just that affordable.
I would like to hear your thoughts…I believe in playing the defense….
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