As everyone who viewed this site are aware, we had been advocating property as the best home for cash over the last decade.
Thankfully this has been a good call and returns from rentals are at an all-time high.
Property prices in 2023 will be stressed with commercial most impacted
The sharp fall in stock markets may be about to signal a recession in 2023 and this will eventually work it’s way into the property prices. Commercial property will experience this immediately as drop in recruitment combined with working from home, will create vacant buildings and attempted sub-lets.
For residential, the increase in mortgage rates has stalled property in the USA and UK. This may move to Ireland too and impact the volume of new homes coming to the market. Builders may choose to play it cautious for next 12 months and may adjust the price to convert housing stock to cash quickly if negative sentiment. The huge demand in Ireland for residential homes may cushion any decrease in price.
Shift to cash in 2023 for pensions
Finally, anyone putting money into pensions should use a cash fund for 6 – 12 months and review it actively to see if markets have bottomed prior to switching to stocks and bonds.
It is advisable for next 12 months to play it cautious owing to high inflation environment impacting many businesses and asset classes globally. Central banks globally are currently increasing interest rates to try to lower inflation which may lead to a recession. Given so, it is sensible to fly to safety in terms of cash.
‘The quickest way to double your money is fold it in half and put it back in your pocket’