The post Expecting a Recession? This is Where to Put Your Money for The Greatest Upside by Kevin Vandenboss appeared first on Benzinga. Visit Benzinga to get more great content like this.

Benzinga Money is a reader-supported publication. We may earn a commission from the advertisers associated with this article. Read our Advertiser Discloser.

Collect passive income from real estate without taking on the headaches of being a landlord. You can buy shares of rental properties with as little as $100 thanks to this investment platform backed by Jeff Bezos.

As the economic climate simmers with uncertainty, interest rate hikes have become a critical focal point for investors. With rates reaching multi-decade highs in response to persistent inflation, the financial landscape has become increasingly challenging. The Federal Reserve’s recent pause in rate hikes suggests a potential cooling of inflation, but this development brings with it the specter of a looming recession, anticipated by many experts to hit in 2024.

Impact on Income-Generating Assets

The rise in interest rates has directly impacted income-generating assets. In the bond market, higher interest rates devalue older bonds with lower yields. For dividend stocks, increased borrowing costs can compress corporate profits, potentially affecting their ability to sustain dividends. These dynamics have led to a decrease in the attractiveness of these traditional investment havens.

Similar to bonds and dividend stocks, income-producing real estate sectors, such as multifamily and commercial properties, feel the pressure of rising interest rates. Higher rates can dissuade buyers, leading to a decrease in demand and subsequent price adjustments. However, this situation also opens up unique investment opportunities within the real estate sector.

The Silver Lining: Real Estate Opportunities Amidst Economic Uncertainty

As the market braces for a potential recession, historical trends suggest the possibility of the Fed reducing interest rates. Such a scenario could rejuvenate the real estate market. The current market conditions, marked by property owners selling at discounts due to floating-rate debt burdens, present a lucrative opportunity for cash-rich investors. Acquiring properties at lower prices now, with the potential to refinance at more favorable rates later, could lead to significant gains.

Add Cash-Flowing Real Estate to Your Portfolio With Shares of Single-Family Rentals:

Offering Cards

Multifamily Real Estate: A Resilient Choice

Among various real estate options, multifamily properties stand out, particularly in the face of an impending recession. The demand for rental units is likely to increase as homeownership becomes more challenging due to economic constraints. With housing being a fundamental need, multifamily real estate offers a level of demand stability that is less susceptible to economic fluctuations.

Accessible Investment Opportunities: Crowdfunding and Private Funds. For those hesitant about direct real estate investment, modern investment platforms offer a practical solution. Real estate crowdfunding and private funds enable investors to acquire equity in properties without the complexities of direct ownership. This approach allows for participation in the real estate market with a lower capital requirement and diversified risk.

Private Market Multifamily Opportunities You Can Invest in Today

Offering Cards

Navigating the Investment Waters in Troubled Times

In summary, while the economic outlook may appear challenging, it also presents opportunities for savvy investors. Multifamily real estate, in particular, offers a promising avenue for investment during these turbulent times. Investors should conduct thorough research and align their strategies with their financial goals to make the most of these opportunities. As always, the key to successful investing lies in understanding the market, being prepared to act, and diversifying risks.

Hold on!

Investors are seeing outstanding returns through curated real estate investment alerts. Sign up to get them sporadically and don’t miss out on offers you’d likely never hear about.

Real Estate Capture

More From Benzinga

How To Collect $1,000 Per Month From Warren Buffett’s Favorite Dividend Stock

Kevin O’Leary-Backed Startup Lets You Become a Venture Capitalist With $100

Elon Musk May Be Adding ‘Landlord’ To His List Of Titles: Here’s How To Join Him With As Little As $100

Elon Musk may be getting into the real estate game with over 100 single-family homes in Texas. Here’s how you can get in on the action as well

Disclaimer: Please be advised that alternative investments carry a risk of monetary loss. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. All information contained on this website is provided as general commentary for informative and entertainment purposes and does not constitute investment advice. Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.