Covid-19 has hit the economy hard – with many analysts predicting that we’re well on our way to the next recession. With cases climbing each day, and more countries entering into lockdowns, the global economy is taking a beating. So, here are 5 ways to make it out of the recession richer.
5. Leverage your equity
Basically, don’t buy shit that you don’t need to. Even if you have the money to splurge on that new car you’ve been eyeing, rather sit on your equity. This allows you the option of taking out home equity loans to use on other investments.
Depending on where you are, home equity loans have an interest rate of about 6% – which is pretty solid. Still, ensure that you’re investing in assets that make sense and work with your portfolio.
4. Take advantage of repossessions
This one might sound harsh, but taking advantage of the fact that people are having their properties repossessed is a surefire way to profit. When the market dips, you can buy properties for much less than their initial value, and sell them off when the market inevitably recovers (or keep them for a really solid long term investment).
3. Follow divorce rates
Again, we never said that getting rich means that you have to be a nice guy. Reports show that divorce rates skyrocket during economic crises. When couples divorce, assets often have to be divided, which could involve liquidation to get the settlement through quickly. You can pick things up for really good prices if you’re savvy.
Ideally, you’re not the one getting divorced, so you can turn somebody else’s heartbreak into a shrewd investment.
2. Track deceased estates
When it comes to deceased estates, heirs will often decide to sell rather than hold onto the property. It may be in slightly older condition, or maybe the heirs just can’t afford to hold onto it, but you can pick up some serious bargains from deceased estates.
Of course death is an awful and tragic thing, but if you can help someone else while also making a good investment, where’s the bad in that?
1. Watch for low interest rates
Number 1 out of the 5 ways to make it out of the recession richer has to do with interest rates. This one may seem odd, but markets are dictated by supply and demand. So essentially, banks need to lend money, to make money. When the economy is down, interest rates tend to plummet, so that the banks can encourage more people to take out loans.
People don’t want to borrow money if they don’t think any money actually exists. That’s where you swoop in and bank on the low interest rates.
- The Perfect Economic Storm Has Started
- How the US is Handling Covid-19’s Financial Impact
- How Covid-19 Lockdowns Around the World Have Gone.
Get Rich On The Downlow During Poor Economic Times
Follow these 5 ways to make it out of the recession richer, and turn a seriously poor economic situation into something good – for you, at least. Remember, capitalism rewards psychopathic behaviour (really, look it up), so making a buck out of others misfortune may be the least you can do in this economic situation.