With the roller coaster stock market movements over the past several months, it is not uncommon to see daily – or even hourly – up and down swings in the three- and four-digit range. So, if you have any equity and/or other market-related holdings, you may be worried about how these unpredictable stock market shifts will affect your portfolio.
Because no one can predict how equities will perform, it is often recommended that you diversify – and one way to do that is by purchasing investment real estate. But, as a rental property investor, can the ups and downs of the stock market have an impact on housing?
The answer here is that it depends.
For example, due to early 2020 stock market crash – coupled with the massive job losses that were brought about by the COVID-19 virus – the demand for new housing has dropped. This, in turn, could cause a fall in home values.
With that in mind, if you’re considering the sale of your property investment(s), you may not reap as much as you had hoped for. However, if your plan is to hang on to your single- and/or multi-family housing units, though, a bigger issue here could be the tenant(s) who have lost their jobs and are now unable to make their rent payments.
Yet, while this could cause you to provide some leniency in the near-term, the longer-term rental property predictions are still positive. Likewise, historical data has shown that long-term real estate rentals have always been a safer investment (as versus stocks and equities) during times of uncertainty.
In any case, though, managing and maintaining real estate rental property can be time-consuming – particularly if you have other commitments. This is where having an experienced property manager on your side can be beneficial.
If you own one or more residential rental properties in the Orlando and/or surrounding Central Florida area, give us a call and we’ll provide you with more details on where a property management team can make your life easier while still allowing you to collect cash flow from your investments.
Source
Stock Market Crash 2020: What You Should Know. By Eman Hamed. March 28, 2020. Mashvisor.