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Writer's picturePace Morby

How Recessions Affect Housing Prices and Where to Put Your Money

Anyone who lived through the 2008 recession will tell you that any recession is never a good thing.


Or at least, that’s what you’ve been told to think and have been hearing from everybody and their mom.


While it’s true that a recession can help lower housing prices, that’s not necessarily a good thing. People stop spending their money in a recession either because they’re afraid of job insecurity and don’t want to use a big chunk of cash on a big investment that they might lose, or because they're already lost their money and can’t spend it.





This means that houses will sit on the market longer, there is less competition and asking prices on homes are lower. But people are afraid to spend their money. And the cycle goes round and round.


So, if you’ve been waiting for the housing market to crash to afford a home, you might find yourself among the group of people afraid to spend. It’s going to feel like you missed your opportunity to get a home.


So, what should you do to secure your cash and a home without putting one or the other at risk?



While being insecure about your job status may make you think you shouldn’t spend your money, part of the reason we’re in a recession is because inflation is eating up people’s nest egg of cash.


Keeping your money stockpiled in the bank only lets inflation eat away at your money more. You need to invest in assets to make sure you maintain your money.


You should view anything worth buying as an investment – whether you’re a real estate investor or just looking for a house for your family to live in.


The fact of the matter is that while assets are diminishing in price now, they hold their value better than cash in any market, anywhere in the country.


That’s why you should get involved in creative financing right now.





Doesn’t buying a lower priced home with less competition that’s been on the market longer so you can negotiate prices sound even better than paying at peak prices? It does to me, especially if you’re not taking out a loan from a bank to get your hands on an asset.


Guys, the fact of the matter is that if you start investing in the real estate market now in one way or another, you’ll be building secure generational wealth for now and the future, while helping people who are going to suffer the consequences of a recession otherwise.


We’re about helping you and your family as well as helping others. I tell the members of the SubTo community to always come offering something to someone else. Instead of letting banks reclaim their properties and destroy others' credit while taking their money, you can gain an asset and help other people through creative financing.


So, here’s what we’re offering our communities: money and asset security during one of the first recessions since the great recession.


There’s never been a better time to know this stuff.


Be one of the people who benefit from a time like this, but also benefits their community, too.

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