The Canadian economy is believed to be heading into a recession in the first half of 2023.
When a recession sets in, the value of your stock portfolio may take a hit.
While this may seem like a downturn, it also creates opportunities to expand your portfolio.
Real estate, for instance, can offer you some stability.
Let’s take a look at three factors that can make real estate a good investment.
1. Low correlation to stocks.
Historically, the real estate market had a low correlation to stocks.
This means that even if the stock market is experiencing a downturn, there's little effect on the real estate market.
2. Recessions create bargains.
While a recession doesn’t always mean cooling off in the housing market, this time it’s exactly what’s happening.
We’ve already seen a significant drop in real estate pricing, and home prices are believed to hit above pre-pandemic levels nationally by the end of 2023.
This opens up opportunities for investment.
3. People still need housing.
Even when the economy is in a downturn, people need a place to live.
This way, by investing in real estate that you can rent out, you’ll be guaranteed to have a steady income.
Interested in investing? Stay tuned for our upcoming post to learn more!