Is Real Estate Investment Safe for Investors Amid COVID-19 Economic Fallout?

The truth of the matter is that while it’s impossible to say that any investment is genuinely recession-proof, the reality is that real estate assets are the safest.

Naturally, investors want to protect investments, especially during economic downturns, and with COVID-19 still spreading without any sign of stopping, it’s expected that you are concerned.

As markets have virtually stopped due to the global pandemic, recession becomes more likely as a question of “when” instead of “if.”

Real Estate and the Global Crisis

Yes, real estate does better than most other investments during a recession, but it depends on the types of investment opportunities that make up your portfolio.

Where properties are located, as well as the markets, are going to challenge your investment directly, so you need to know where to invest money wisely.

A global crisis of this magnitude has not been seen by anyone living today, so much of the future is entirely uncertain, so you need to position yourself in the best possible place to maintain stability.

Best Types of Real Estate Investment Opportunities

Types of real estate investments you want to avoid right now include retail locations that depend on in-store sales, considering the current climate is telling everyone to stay inside.

Alternatively, what you should focus on is income investments like single-family or multifamily rentals that are or could be considered Class A properties. Properties like these will attract top tenants that are likely to continue to provide income.

Ideally, you’d want to diversify your properties and have properties that cover Class A, Class B, and Class C. In the situation we’re currently in, Class A properties are more critical while B and C properties are more likely to be impacted by the economic downturn.

Cash Flow and Staying Well-Balanced

When it comes to real estate investing, cash flow is the heart of the industry, even more so in a recession. More revenue streams equal you being in a better position to cover necessary expenses should any of your investments experience a sharp decline.

To stay well-balanced and handle those curved balls that will be thrown, your best approach is to diversify your portfolio across multiple markets in various cities, like Atlanta, across the country. Every location is going to feel the effects of COVID-19 differently than others, so spreading out investments is vital.

Finding Recession-Proof Investments

As an investor, you know it can take time to find properties that fit the recession-proof criteria that are necessary to remain stable. Wouldn’t it be great if there were a company that did it all for you, finding, vetting, and verifying it would be profitable for you?

Fortunately for you, companies like Relotz do all the legwork and have all of the information you need to make an informed decision on the property you may be looking for. Even if you’re not familiar with the Atlanta, Georgia real estate market, we can help you find the right property to enhance your portfolio – just give us a call at 1.844.473.5689, and we will be happy to help!