Those who study the complex fields of the economic sciences can tell you how unpredictable these platforms are, but looking through certain criteria with the use of new technologies, economists can assess with surprising precision when an economic recession is about to happen, and many believe that 2019 or 2020 may be the time for a new one to come. That is why we’ve come with four crystal clear points that you must consider before the big tide comes.
What Comes Before
Buying a home before a financial downturn can have several peculiarities, aside from bringing lower interest rates and altering the whole real estate market, recessions that last longer than expected can have a real impact in home prices, making them fall sharply. But as we all know, once the markets are at the bottom, they’ll surely rise again.
Refinancing or Buying
Pay attention, you will need to speed up your planning execution, all because there is only one year and a half left to decide if you are going to acquire a new property or to refinance a mortgage. Every economic recession is different, so you must look back to understand and estimate how long this recession will be, lenders take these periods very seriously, making your chances very limited.
Throw Away All High-Interest Debt
Many do not notice the drain until it’s too late, contracting debts by not paying bills on time is the worst trait to ignore, you need a separated fund for any emergency, the trick here is to protect your credit score at all costs, by using the proper spending habits and available tools such as line of credits or home equity loans to invest in businesses that tend to perform very well during crises.
Loans, But Not All of Them
Look for fixed-term arrangements, various home equity loans work under these methods, allowing you to take a considerable amount of money, crucial reach the final goal. These are some of the most buyer-friendly tools to protect yourself against any recession, because they are very predictable and your partial payments do not change much (and sometimes not at all).