Are Multi-Family Properties a Smart Investment in a Recession?

Whether or not a recession is on the way is not up to us to determine, though there is always chatter about what bearing another recession would have on our economy and on our investments. When we are talking about recession, it is always wise to evaluate your portfolio and to gain as much access and knowledge as possible. There are many variables and having a strong understanding of what investments are strong is always a smart idea. So, why are multi-family properties a smart investment in the shadows of a potential recession?

One of the basic human needs is shelter. Regardless of where you live, what you do, and what your income is, shelter is a necessity to a healthy, thriving life. There are also studies that show that proper housing can make a huge impact on productivity and capabilities. So in a time of stress, having quality, affordable housing is proven to give more confidence to someone who may be down on their luck. Without shelter or housing, people are less likely to be able to stay employed, even if they are highly trained, educated, or qualified. As such, a multi-family property is a huge benefit to a community that may be going through a recession. Apartment buildings often offer more affordable housing to those who are capable of living in less space than a house can provide. And even in luxury living, apartments tend to be more affordable options because so many things are able to scale up in order to meet the needs of 500 tenants as opposed to 1 or 2. In times of recession, people are either looking or are forced to downsize, and this is a great opportunity for multi-family properties to shine! Even when they are cutting out all of the extras in life, housing is the last thing to go or to be evaluated. So even when things are rough, people need housing. This is an excellent insurance policy for your portfolio!

The second benefit of investing in multi-family properties is that after a recession, they are the first to rebound. If you have a luxury property in your portfolio, you will immediately see a rise in occupancy and if you own a property that is more attractive to lower income households, you should anticipate holding steady as the economic situation recovers. You will also have the ability to raise rents as the economy stabilizes and this is exactly what you want when you are holding on to a large, commercial property.

If you are in the market to add to your portfolio with the help of multi-family real estate, let Magnolia Design Properties be your first call! We are a syndicated multi-family real estate investment company that works with one investor client, one property at a time. Are you ready to find a real estate investment services firm who works for you? Are you wanting to invest in real estate as a passive, accredited investor in order to do the things you love? Do you want to work with a highly motivated, professional team that has a detailed investment strategy, a repeatable business model that produces targeted, profitable results? If you have answered “yes” to any of these questions, then you have found multifamily real estate investments at its very best with Magnolia Design Properties.

 

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