Question

If the U.S. economy does experience a serious recession following recovery from COVID-19 and you had...

If the U.S. economy does experience a serious recession following recovery from COVID-19 and you had $100,000 in the bank, would you invest in real estate or other financial assets?

Please explain in a few paragraphs or so. Thank you!

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Answer #1

Investing in real estate would be better option due to the following :

-- Property investments can produce stable income.

-- Real estate may be less sensitive to volatility.

-- Property may outperform stocks and bonds.

Also, during recession stock markets are very unpredictable and could lead to adverse selection of stock, and worse, loss.

Real estate values grow gradually and steadily. It helps in earning rental income, providing consistency during the time of recession. Alsom rent prices are sticky and don't change much even during recession.

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