TO HEDGE AGAINST RISK in the economy, folks should do what they always do in these times: turn to real estate.
Unlike a stock, option or index fund, real estate is not only a means to building wealth, but owning a home has built-in tax benefits and savings while also being a potential source of revenue even during a recession.
You can live in a house, you can rent it out, you can borrow against it. You can fundamentally alter a property’s value yourself à la Home Depot or Lowes. (Think about the jail time if you altered a stock’s value yourself).
Buying real estate during turbulent times is a smart move especially if you can lock-in a relatively low mortgage interest rate (even 1/4th a point lower rate will save thousands over 30 years).
And unlike renting where money out never comes back to a tenant, mortgage payments are really payments to yourself. You’ll benefit from either increased home equity or from capital gains savings if you sell.