My plan for a recession? Sell my primary, put everything into investment property. One shot deal, survive or perish.[/quote]
Also, I had to ask about this one too.
If financial survival is what you are concerned about, why would you want to take on considerable risk in this scenario to gamble again about being correct and sell your primary home to buy rentals? I mean if you wait until a recession to sell your primary home, aren’t you essentially selling when the home prices are depressed? And hence you you really won’t get that much money back and increase your purchasing power, even though the investment properties are also cheaper. Also, what if your timing is just not correct…you sell your primary home and buy investment properties thinking the markets finished tanking, and then after you bought investment properties , the housing market fell furthermmm..and you end up with underperforming rental properties and also now you have no home to live in that is free and clear? That seems like gambling to me too, not just simply surviving, no?
How is this less risky than just regularly making small tiny drip investments over 20-30 years where each tiny contribution is barely some fancy meals in some nice restaurants?
This is the part why I’m confused. Because earlier you mentioned you’re looking to financially survive. Ok, I get that. But if that’s really what you’re only looking to do, you would be doing the things that minimize financial risk.
But at the same time, everything else you mention about your financial strategy is considerable high risk. You’re counting on your prediction to be accurate, you’re ignoring the golden rule that “markets can stay irrational longer you can stay solvent”, and you’re setting yourself up for a 1 hit/ 1 wonder event that exposes you to two considerable financial risks
1. Waiting for that one hit/one correct market time, you’re losing a lot of opportunity cost waiting
2. Even if you wait long enough for a correction and you enter the market during that correction, but the markets correct even further after you enter, then you have real market losses too on top of the opportunity cost you already lost in #1 by waiting
It just seems like this financial strategy is highly speculative and risky (IE gambling) and the antithesis of simply financially surviving.
