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When you’ve got a bit of extra cash from a salary increase, a bonus or maybe an inheritance, it’s always sensible to invest it. The go-to option for investors is usually the stock market but if you don’t really know what you’re doing, it can be a little risky and you can easily end up losing it all.
You can always get a broker but they’re going to take a cut of the profits as well. If you’re a bit of an investment novice, it might be better to go with some of these safer alternatives to the stock market.
Cryptocurrency is the hot new investment opportunity at the moment and it seems like everybody is jumping on the bandwagon. You don’t need as much in depth knowledge as you would to play the stock market and there are some great opportunities for making money if you do a bit of research on the market. Bitcoin was the first cryptocurrency and it shot up in value by a ridiculous amount over the years, making a lot of money for a lot of people.
Since then, new cryptocurrencies like Litecoin have emerged and everybody is keen to get hold of some, hoping that they’ll follow the same trend as Bitcoin. The only problem with cryptocurrency is that it’s an unregulated market that isn’t bound by exchange rates like normal currency so the value is liable to change rapidly. That’s good news if it shoots up, but it’s equally likely to plummet at a moment’s notice.
Real estate is the other main investment that people are opting for at the moment, and for good reason. House prices are consistently rising and you can charge a good amount of rent, giving you a great investment that appreciates in value over time, as well as a steady income every month. You’ll want to find a real estate agent near me and get some professional advice before you buy. If you buy in a neighborhood that’s on the way out, you’ll struggle to rent the place out.
On the other hand, if you can find a place in an area that’s on the rise, you’ll get a relatively cheap price on a property that will be worth a lot in a few years. When you’re deciding on a property, you’ll have to choose between a new build that doesn’t need much work doing or an older property that needs a bit of care and attention. It’ll be cheaper overall to get an older property and renovate it, as long as it doesn’t need any major structural repairs, but you’ll have wait a bit longer before you can rent it out and start seeing a return.
Peer To Peer Lending
A lot of new lending streams that don’t go through banks have emerged recently, most notably crowdfunding and peer to peer lending. There are sites that match you up with people in need of a loan and you can offer up your money. You’ll get a much better return than most investments and it’s relatively safe as the borrowers are carefully vetted before being accepted for a loan.
These three investment options are far safer than the stock market for people that aren’t experts.