The current economic downturn has left many investors feeling uncertain about the future. The stock market is volatile, and traditional investments such as bonds are not providing the stability that they once did.
The best investments during a recession are not what you might think. It doesn’t matter if your economy is booming or contracting, there’s still time for savvy investors to find big gains with the right strategy and hard work!
Here I’ll outline three great options that anyone can invest in:
Option 1: Multifamily Properties
There are several reasons why multifamily properties are a good investment during a recession. First, they tend to be more affordable than single-family homes, making them a good option for cash-strapped buyers. Second, they offer the potential for higher rental income, as tenants are often willing to pay premium prices for stable housing during times of economic uncertainty. Finally, multifamily properties are often easier to finance than other types of real estate, making them a good option for investors who may have difficulty securing traditional financing.
Option 2: Self Storage Units
Self storage is one of the most recession-proof investments out there. People will always need somewhere to store their belongings, whether they’re downsizing, moving, or decluttering. And as more and more people move into urban areas, the demand for self storage only increases. What’s great about investing in a self storage fund is that you can get started with relatively little money. There are many different ways to invest in self storage, from REITs to private equity funds. And because self storage is such a niche market, you can often get exposure to properties that you wouldn’t be able to access through traditional real estate investment vehicles. Another reason to consider investing in self storage during a recession is that it’s a very hands-off investment. Once you’ve made your initial investment, the day-to-day management of the property is handled by the fund manager. This means that you can sit back and collect your dividends without having to worry about the day-to-day operations of the property.
Option 3: Dividend Paying Whole Life Insurance Policy
The banking industry is one of the oldest and most trusted institutions in society, with roots going back centuries. Banks were originally created to store money and provide an earning rate of return for their clients, but it quickly became more than that with lenders being able to offer loans at higher interest rates-which is what makes them so powerful. Infinite banking or cash flow banking is an innovative solution that allows business owners the ability to establish their own private banking system as part of their overall wealth strategy in their personal economy. This can be used for both personal and professional uses. At its core, the infinite banking strategy is a way to grow your wealth more efficiently than by using third-party lenders. It is a solution that can not only protect the downside but also provide liquidity for upside growth and investment in addition to adding velocity and tax efficiency to your wealth strategy.
You can’t predict the future, but you should be prepared for it. The economic cycles are inevitable and when that next recession hits there will likely be big changes in store – do your finances stand strong? That’s why our company specializes exclusively on multifamily real estate; these properties offer great protection against economic uncertainty, that is why we believe multifamily real estate is the best investment through a recession.
Learn more at www.pantheoninvest.com/contact