When you hear a news announcements predicting an imminent drop in the economy or see an article discussing the credit crunch, what is the first thought that you have regarding money?  For the ‘average’ person it might be to identify possible methods to reduce their monthly outgoings.  This would be understandable, as fear is a powerful emotion for determining how and where we spend our hard-earned income.

House owners decide that it is a bad time to sell their house to buy a new home, Drivers decide that it is not a good time to buy a new vehicle, parents vow not to spend a fortune on Christmas gifts for their children.  Basically, demands for numerous products and services are reduced.

As an example, when less individuals are prepared to buy new homes, the cost of the average house drops. What happens to the rental market? The irony is that this is the best time to purchase a home if you have money and do not need to sell your house to buy the property.

Those people with capital to invest are grateful for the current economic ‘crisis’!  They can buy rental properties at a much lower cost and there is an increased likelihood that they will find tenants.  Hence, they are able to capitalise greatly from the changes in the economy.

Keep your mind open, be skeptical and

Have fun!