Recalling the “Great Recession” of 2008, many would-be land buyers are questioning whether it’s a good idea to buy real estate in a recession. During the early months of 2020, many economists were predicting that we’d see a recession by 2021. Clearly, those experts did not foresee a global pandemic; at the time of this writing, it appears the recession has begun, or is at least imminent.
It’s easy to look back at the collapse of the housing market during the last big downturn and expect the worst for real estate today. However, those who are scared off from buying ranch property now could be missing a big opportunity.
What’s different about the real estate market now?
The housing market’s collapse in the first decade of the new millennium was caused almost entirely by questionable lending practices at the time. So-called “sub-prime” mortgages were being offered to just about anyone—often to people who realistically should not have been buying homes. The recession did not directly cause those buyers to default on their loans. Rather, they were already overextended before the economy began to slip. As unemployment rose, many people walked away from those loans they couldn’t afford.
Buying ranch property isn’t like buying your first home
The majority of the loan defaults in the last recession were on primary residences, and many were first-time buyers. If you are considering a ranch property investment, you likely have a different reason for your purchase. Chances are, you already own real estate. You might be considering a ranch in the country for a retirement home, or perhaps as a vacation getaway; maybe you’d like a place to build your dream home; or you might want a place where you can raise horses and other animals.
You might be in a position where you can pay cash for your property. And, clearly, if that’s the case, your situation is vastly different from that of the people who lost their homes in the last big recession.
Loans are cheap again… for the right buyers
We aren’t going to see people walking away from their homes like we did in ‘08. Banks aren’t handing out loans like candy on Halloween this time around. But if you have good credit and a source of income, interest rates now are extremely low. Low enough, in fact, that even if you can buy in cash, it’s worth considering a loan. Doing so could allow you to hold onto some cash in case the recession lasts longer than expected.
Buying a ranch for self-sufficiency
Considering that the COVID-19 crisis is the largest trigger of our current slowdown, many people are looking for ways to be more self-sufficient. If you are considering such options, owning a plot of land where you can grow your own food and live mostly “off-the-grid” can help to ensure that you are ready for future emergencies. Whether or not such emergencies ever occur, a largely self-sufficient lifestyle is very satisfying for many people.
Learn more about our Wyoming ranch properties
For many people, Wyoming is the perfect place to own ranchland, and Wild Horse Ranch is one of the best spots in the state. While it’s away from city crowds, the college town of Laramie is minutes away. The location gives you the outdoor lifestyle along with access to all the conveniences you’re used to. Get in touch today for a free info packet and when you’re ready for a tour, just give us a call at 877.468.9802.