Debate: Buy or Wait Given Looming Economic Recessionary Fears

[Riley C.]

Hi BP,

I've set out a goal to purchase my first property before my current lease ends in April. I'm currently renting in Chicago and I'm looking buy a multifamily property in certain up and coming areas in inner city Chicago including  East Humboldt Park, Bronzeville, Pilsen, North Lawndale, etc.

What I'd like in feedback if you're reading this is, what's your opinion on buying in the near-term (e.g. Spring 2019 - 2020) with all the given expectations for a looming recession? Nobody can realistically accurately time recessions (although I personally believe we're certainly due for one very soon) and part of me feels as though an 'informed' investment is still an investment and a wise choice to move forward with. 

On the other hand, I also wonder if purchasing a property nearly before a recession is unwise given depreciation could potentially outweigh equity put in the property in addition to the opportunity cost of waiting longer until housing prices depress over time through a recession. I'm just looking for perspectives here... Any thoughts?

[Russell Brazil]

Not that the market is going to collapse like it did a decade ago.....but honestly, most people dont have the cajones to buy during recessions.  Many think they will...but honestly during the last one, I was the only person I knew buying.