Crisis - Time To Invest - When To Buy A Teacher

2024 Author: Sebastian Paterson | [email protected]. Last modified: 2023-12-16 13:47

When to start investing

"Everything passes and this will pass". The famous saying of King Solomon is more relevant than ever today when we talk about the financial crisis that has swept the world. As you know, the economy develops cyclically, and the deeper the stage of decline, the more active the recovery will be. Therefore, at the very beginning of the crisis, a competent investor does not think about preserving his savings or minimizing losses, but about what actions must be taken in order to extract the greatest profit at a time when, sooner or later, economic indicators begin to grow.

An analysis of the previous crisis phenomena, both global and local, indicates that at the stage of economic recovery, first of all, there is a steady and increasing demand for land plots, then the construction sectors of the economy become more active, then industry, agriculture, science and trade. This is natural - the intensive development of production requires new premises for enterprises that are being built on land plots, the restoration of the purchasing power of the population dictates a sharp increase in demand for residential real estate, built, again, on land.

At what stage is it better to start purchasing a land plot? It would seem that the obvious answer: “to wait for the lowest point of economic decline and purchase a land plot at the lowest price” seems to me not optimal. Firstly, this approach is typical for most potential investors, and there is a significant share of the risk that the site in which you are interested will eventually go to another buyer. Secondly, the seller of the land is more likely to withdraw it from the sale at the moment when the price level approaches the extremely low level. Thirdly, if the owners of land plots can, without much harm to themselves, stop any sales activity at the stage of the maximum drop in economic indicators, then the firms engaged in the arrangement, supply of communications,construction is extremely interested in continuing continuous activities at all stages of the crisis, the slightest downtime for most of them means imminent bankruptcy. Therefore, at the extreme stage of the crisis, having already owned a plot of land, you will be able to agree on the production of work at minimal, practically dumping prices, which will allow you to receive a completed real estate object ready for sale or lease by the time the economy begins to recover. Considering that there will be few such facilities at the early post-crisis stage, liquidity and profitability are practically guaranteed.practically dumping prices, which will allow to receive a completed real estate object ready for sale or lease by the time the economy begins to recover. Considering that there will be few such objects at the early post-crisis stage, liquidity and profitability are practically guaranteed.practically dumping prices, which will allow to receive a completed real estate object ready for sale or lease by the time the economy begins to recover. Considering that there will be few such objects at the early post-crisis stage, liquidity and profitability are practically guaranteed.

Thus, the fall in prices for the land plot you are interested in by 15-25 percent compared to the pre-crisis period is a fairly weighty argument to think about purchasing it, without waiting for further developments.