V Shaped Recovery in Property
Sometimes a chart is worth more than any conjecture or any newspaper article regarding property. This chart stood out ” Year over Year change in Employment” based in the USA. This chart shows the worst change in employment EVER! There were recessions such as 1974, 1982,1991, 2003 and the Great Recession we all remember 2008. However this is the worst. It is hard for me to believe that there will be a V Shaped recovery. Lockdown will be over and the world goes back to the way it was. This chart looks like a I chart. Straight down!
So how does this apply to us property investors. Stop and do Nothing? We are not. There are always deals. Death, Divorce etc. Plus we did a math exploration. We assumed that prices fall 20% and what that did to our yields. Firstly we buy BMV and we have a long term perspective of holding. Bottom line, this is a blip and long term it does not matter. We specialized in Social housing and have 5 and 10 year contracts. Simply holding we compound money. Waiting for prices to fall is complete fallacy and not a way to make money.