Sell Property For Cash, Buy House For Less
One
characteristic of a recession is a drop in the housing prices. This
is why many experts would suggest selling property for cash now and
buying it, or another one, back for a lower amount as the market
bottoms out. This is an investing trick known as “shorting the
market”.
Sell
property for cash and renting for the short-term can take
advantage of a fall in another price: rent. Rents often fall, or at
least stabilise, during recessions because market conditions ? more
unemployment among tenants ? prevent landlords from raising them.
Similarly
the price of many big-ticket goods falls ? so if you can wait
before buying that new TV, you could snap up a bargain in 12 months
or so. As people lose the will to spend, retailers are forced to
slash prices to get whatever income they can. Similarly, if you are
due a new car, fridge, or even something like a fitted kitchen, a
recession is the ideal time to buy ? especially if you have got
money left over from selling your property for cash.
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