Review Your Property Portfolio and Adjust for Changes.
Unusual times call for decisive thinking and sometimes the challenge can be unlike anything you’ve ever dealt with before.
These are unprecedented times for markets everywhere. Not the best time to be an investor and yet history will show that these periods of extreme volatility can be a challenge to push through the pain and look for the gain.
When the market is running high you really don’t need a lot of courage to invest. But when the markets are unstable, strategy is the key component. Portfolios have been stress tested most recently with the 2008-2009 Great Recession, the post 9/11 market, the tech bubble, and the 1987 crash, all of which prove that over the long run — markets do rebound.
When times are rough it takes a certain courage not to respond emotionally, but the other side of that is how turmoil can also bring about opportunity. Of course, with courage comes discipline and keeping the right perspective.
An investment made today could very well be the one that motivates future growth for your portfolio. However, impulsively looking at your portfolio or looking for guidance in the wrong places will not help your long term financial gain.
Real Estate Investment
If the real estate market is your preferred investment vehicle, the following indicators are important to consider: job growth, population growth and affordability. Identify an area that has jobs or the prospect of jobs when the economy recovers. Sectors such as technology, health care, bio-tech, military, and higher education have been prime areas of growth prior to COVID-19, Will those industries come back? That’s a point to consider.
The effects of the pandemic will be felt more heavily in states and cities which had poor economies before the pandemic. Also areas dependent on the oil business will likely be more challenged as well.
Large cities such as New York, Los Angeles and Chicago are staggering from the pandemic effects; however, these are all cities which have typically had very strong economies, although very expensive, too.
Growing, affordable metros with diverse economies will probably experience a measurable dip, but will likely be quicker to recover. Look for opportunities in buoyant markets where home values are more stable.
In reality, this pandemic will change us all. Whether we’re focusing on retirement or investing in our next rental property. It will change who we are and how we do business. Some industries will die out and the way we do things will change. New industries and inventions will emerge and continue to change how we live.
Now is a good time to focus on your financial future and how it will evolve. Avoid the negatives and look ahead. We can all take heart from the great leaders in history who have soldiered on through wars and collapsing economies, determined to emerge and forge ahead. Remember that Cousin James Management is always here for you when you need us. Investing in rental properties and keeping them rented and maintained are two different stories. We can help with the heavy lifting. It’s what we do and we do it well, supporting commercial and residential property owners with optimum property maintenance and services. Stay in touch and most of all — stay well and safe.