Post-Recession – Dictionary definition: occurring after a recession.
Syndrome – Dictionary definition: a characteristic combination of opinions, emotions, or behavior.
I have noticed that as we enter the recovery phase after a recession in real estate, people seem to get very edgy as the recovery continues rather than excited that the recession is over. So, I have decided to call this phenomenon the Post-Recession Syndrome (PRS). Since I am creating the new phrase, I am going to give it the definition: An unfounded fear that the recovery from the recession will not run its usual course.
What’s the usual course, you ask?
The last 4 recessions effecting investment property lasted 4-7 years. The recoveries after that lasted 8-12 years. The PRS usually affects those who have not been through more than one cycle. The main reason for this is that, once the recovery starts, the “experts” begin talking about why the recovery won’t last. They predict a bubble, outside influences that will cause real estate to stumble again, or resort to saying the “prices just can’t go up anymore”.
Those who have been through these recessions before recognize the recession and recovery for what it is. In reality, our economic system is so complicated that each new recession is caused by something different, and it seems like the recoveries begin to happen after The Powers That Be start making changes to fix what went wrong.
So, what’s the cure for PRS? The cure starts with education about real estate investing. Get to know the market and see what has happened in the past. Look at the cycles so you can somewhat anticipate the future. Make an investment plan that lays out your goals for what you are trying to achieve with your investments. Make sound business decisions based upon what you have learned, what you have planned, and what the market looks like now.
We at Buckingham are here to help you with this process every step of the way.