Why the time to preserve Wealth in Real Estate has come?
“Pandemic” gave a huge blow to the economy and financial situation of the world, people have lost a lot because their businesses couldn’t perform the way it was doing before and many people lost their jobs as companies couldn’t keep up during this Pandemic.
This Pandemic has kicked in a long-overdue Global recession. Pandemic isn’t the only reason we are in this Worst Global recession. It was long due but was being artificially prevented most of the time and that’s why I have a strong feeling that this time around it will be worse than ever.
Inflation is getting higher every single day, even the prices of local commodities keep increasing. It is time that we understand the fact that preserving our hard-earned money should be our priority now. In times to come, cash will no more be the king because inflation is going to make it worthless as time passes.
The next couple of years will be the worst according to the data I have collected during my research of different financial markets. This is not just an assumption but the interpretation of the data & research by some of the leading economists.
The need of the hour is to protect our wealth against high inflation so our money doesn’t depreciate every day but how can we preserve our money and where should we preserve our money is the question? It is time to get our cash out and invest it before further losses in its value. Cash flow, not cash is the new king of the game and you can only create cash flow when you invest.
The big question now is where to invest? You can certainly invest it into businesses that obviously come with their risks or you can put them in the “SAFE HAVENS,” When the money is getting depreciated heavily after each passing day you just protect it by putting it into something that has a finite value.
Well, let’s understand how a “Safe-haven” provides safety for Investor to protect their money?
In times of market turbulence and uncertainty, a safe haven is expected to retain or increase its value. A safe haven is considered to minimize our losses in the event of a market downturn. While such systemic events in the market are unavoidable, some investors look to buy safe-haven assets that are uncorrelated or negatively correlated to the general market during times of distress. While most assets are falling in value, safe havens either retain or increase in value.
So which investments can be considered safe heaven?
Well Gold, Silver and other commodities, such as copper, sugar, corn, and livestock, are negatively correlated with stocks and bonds and serve as safe havens for investors. In addition T Bills, defenseive stocks, CHF and even USD can be considered a safe heaven. However, real estate is the No. 1 tangible investment and a safe haven for all, especially when financial markets and Forex are in an unprecedented state of volatility. Real estate professionals can, therefore, expect to receive numerous requests from highly liquid investors looking for the best opportunities to safeguard their wealth
As a local example if an Investor of DHA Lahore performs ample due diligence, he will definitely find that DHA Lahore has been showing very healthy price behavior. Healthy price behavior is where a market makes a higher high and then goes for a correction, tests the recent lows, consolidates for a specific time period, and then shoots back even higher than the past high due to its buyers confidance.
DHA Lahore has always had strong fundamentals and fundamentals of any Real estate are the reason why the buyers are always decisive and confident about the market more often than a seller. Therefore there is always less supply in the market and a higher demand that takes the price of DHA Lahore making impulsive hikes.
Real estate, just like Gold and silver has a finite value and cannot be created on its own. Therefore these are the only true safe heavens unlike USD, T Bills. The moment we realize that the current financial system is flawed and USD is not really a safe heaven, we will just start preserving our money into real safe havens right away.
“Protect your money into safe havens before it gets too late for you to Realize and React”