Investing in Land During A Recession – Why Is It Considered One of The Best Strategy?

Recessions have always been difficult for even the greatest economies, but there are ways of investing that never fail to operate lucratively during the term.  

The pandemic of “Covid-19” is officially termed as a recession for the US economy which held once after the recession of 2008. It’s no surprise that the US real estate market is struggling but more for debtors. This can be an opportunity for land investors to generate maximum profit. 

So, if you are in the process of finding a safe investment during a recession, land investment is one of the best low-risk Investments.   

Should You Invest in Land During a Recession? 

During a recession, all the investment strategies become sensitive to volatility, while land investment shows stability.  

During the most economy-dropping recession of 2008, the real estate prices fell up to 19.7%. It was a huge setback for homeowners and sellers, but those willing to make an investment were expected to get unpredictable profits.

That is the most considerable benefit of investment during a recession. It may not be the ideal time for homeowners or land sellers, but people with a hand in money get several advantages of recessions. 

Comparing Land Investing with Stock Market Investing

During the last 5 recessions in US history, stock market values fell dramatically, although real estate performed much better. 3 out of 5 recessions proved lucrative for investors and only 1.9% of prices fell during the recession of 1991. These statics lets investors know that land investment can be more suitable during recessions.

On the contrary, stocks are liquid assets. The condition of stock market performance during the last six recessions was disappointing and investors faced financial downfalls. For the current situation, when typical recessions have converted into a global recession. The stock market becomes less trusted for investment purposes during times of uncertainty. 

“When the stock market is doing poorly, investors who are looking for other opportunities find that real estate is a haven.” Says Mihal Gartenberg. 

According to a recent article published by Forbes; Stock prices may fall more than they did during the 2008 recession. Further more, we could face the worth stock condition since the 1930s.  

Is 2021 the Year to Invest in New York Land? 

2020 was fairly predicted as a good year for real estate business growth but since the market didn’t perform well and real estate inventory vanished. Zillow included that; New York real estate prices have increased by 5.1% due to the factor; supply and demand. Moreover, prices are expected to go up 7.6% for the New York Market and 7.9% for the whole US Market. Therefore, there are no chances of the New York market crash of 2021. Investors are continuously getting benefits and creating space for other investors. The market will function much better once the virus vaccine is found.

On the contrary, stocks are liquid assets. The condition of stocks performance during the last six recessions was disappointing and investors faced a lot of downfalls. For the current situation, when typical recessions have converted into a global recession. The stock market becomes less trusted for investment purposes during times of uncertainty. 

“When the stock market is doing poorly, investors who are looking for other opportunities find that real estate is a haven.” Says Mihal Gartenberg. 

According to a recent article published by Forbes; Stock prices may fall more than they did during the 2008 recession. Further covered that we could face the worth stock condition since the 1930s.  

Is 2021 a Good Year to Invest in New York Land?  

2020 was fairly predicted as a good year for real estate business growth but since the market didn’t perform well and real estate inventory vanished. Zillow included that; New York real estate prices have increased by 5.1% due to the factor; supply and demand. Moreover, prices are expected to go up 7.6% for the New York Market and 7.9% for the whole US Market. 

Therefore, there are no chances of the New York market crash of 2021. Investors are continuously getting benefits and creating space for other investors. The market will function much better once the virus vaccine is found. 

If you are thinking to invest in New York land, We can help you get productive to find the perfect parcel during the recession! Fill out this form to let us know what you are looking for, or give our office a call today! (888) 247-7604

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