How to prepare for a potential housing market crash in 2023

There’s been a lot of concern about the economy lately, particularly regarding inflation, rising interest rates, layoffs, a potential recession — and the housing market. The housing crash of 2008 left many families underwater in their mortgages, leading to a wave of foreclosures and people unable to move until housing prices appreciated or they built up enough equity to sell.

Steps To Capitalize on a Housing Market Crash

If you’re looking to capitalize on a potential housing crash, begin preparations early, as good property buys may be just around the corner. Here are a few tips for enhancing an investment property portfolio or starting one from scratch.

1. Build Up Cash Reserves

Investors seeking to buy up a few properties once prices drop should start maximizing their savings now. Curtail any frivolous spending and redirect it to a savings account. The more cash available, the better. While home prices may fall, the cost of a mortgage will increase due to current higher interest rates — the more you have for a down payment, the less you’ll ultimately pay in interest.

 

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