With talks of an upcoming recession, there is panic among many. How will the economy come out of this? How will the everyday person be impacted?
For real estate investors, the talk of a recession drums up a lot of questions. Ryan Coycle, Founder of Connect.ca and seasoned real estate investor sat down with Simeon Papailias, Senior Partner at Royal LePage, to answer investors' most asked questions about real estate and the recession.
While there has been no official announcement marking the start of a recession, the experts believe we are in fact in the beginning of one. We are contracting our economy in attempts to wrangle inflation. Both interest rates and inflation are at an all time high. It’s no secret that the economy has been declining since the start of the pandemic, however, in 2022, we have reached peak highs in the aforementioned areas leading many experts to believe we are in fact in the midst of a recession.
Preconstruction investing is one of the best investments a person can make in times like this. With inflation and interest at their peak, sitting on cash or taking out a mortgage can devalue the money you have. The best thing to do in a market like this is sit on an asset class such as a preconstruction investment.
Time is the greatest hedge when investing. Within the 4-6 years in which a building is being built, you gain rent appreciation and capital appreciation, accumulating wealth while your cash is parked somewhere.
In a volatile market such as this one, investing in preconstruction real estate is a no brainer.
What makes preconstruction the best asset class?
We’ve answered the question of why you should invest, but now it comes down to where. We have continued to see substantial success stories out of Hamilton. Hamilton continues to dominate the real estate market and should be on every investor's radar.
Why invest in Hamilton?
While it is evident that a recession is inevitable, there is still hope for those looking to increase their assets and overall capital. The preconstruction industry continues to see success, even through trivial times like these. Don’t let the recession scare you - park your money in smart assets, give it time, and watch the rewards seap in!