Talk about how fragile we are and how humanity thinks it controls the environment or rules the planet. Think again!

Putting aside all the statistics and graphs or government measures, I wish to focus on what an investor’s state of mind could or should be during times of crisis. I believe that times of new order or disorder are suitable times to shine and show character. Yes, it’s a shock when our “cheese” has moved or in this case our world as we know it has been removed; But here is the thing. The sooner we shake off the confusion and understand the new situation we are in the better.

From a business, financial, investment point of view and depending on your profile as an investor, you need to decide what your position is and act on it. If you are more conservative and passive you will probably choose to wait it out until things return to normal where you are more comfortable about how the story goes. But if you are more aggressive or opportunistic, times of disorder may certainly present you with rare and unique opportunities.

For example, these are odd days where the government and banks want to lend you money  and they want to lend it very cheaply! Why pass on a great opportunity to refinance a mortgage on your house or rental property?! With cash on hand today’s confusing times may be perfect to pick up a real estate investment property at a great price and unique cap rate.

Baron Rothschild, a British nobleman and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.” Rothschild made a fortune buying during panic times. But that’s not the whole story. The original quote is believed to be “Buy when there’s blood in the streets, even if the blood is your own.”

But do you have the stomach for it? If you ignore the short term and focus on mid and long term do you think a real estate investment will look differently than before the coronavirus? I highly doubt that. People will still need a roof over their heads . Businesses need an office or facility to operate out of and the GTA is still an overcrowded island. Yes, the economy will soften for a while but real-estate is surely a safe bet in the long run. That is my position.

If you manage to collect your thoughts quickly and prepare for decisive action while others are rattled or stun, you may create yourself an advantage in the market. For further thoughts or to take action give me a call.

Broker of Record, Schichter Realty Inc.
zvi@schichterrealty.ca
647-294-2285