How to Decide Where to Invest?
Cycles Of The Economy
There’s one thing you can be sure of when looking into economics and the state of the world economy – everything happens in cycles. From boom to bust back to boom again, the integral cogs of economies across the world will keep on turning; it’s just a matter of how fast and how efficiently they’re working. When a spanner gets thrown in the works (economic downturn, hyperinflation, recession, mass unemployment, market crash, take your pick) things can get difficult. However you can always be sure that in the end the markets will sort themselves out again, we’ll claw our way out of the red, into the back and begin to prosper again.
We’re seeing this cycle in action right now. The recession that struck in 2009 saw ground domestic product fall by 1.5% and unemployment skyrocket. No, in 2013 we seem to have found some firmer financial footing as the UK managed to avoid the dreaded ‘triple dip recession’ even if it was only by the narrowest of margins.
Now this is no means the end of the story for the economic dip in the UK, but it does show that there is light at the end of the tunnel. And that gets business people such as myself very excited. It means that there will be a lot of opportunities to invest in different types areas of the market to invest in and make a profit.
Here’s my views on what’s right to invest in over the next year.
There’s one thing you can be sure of when looking into economics and the state of the world economy – everything happens in cycles. From boom to bust back to boom again, the integral cogs of economies across the world will keep on turning; it’s just a matter of how fast and how efficiently they’re working. When a spanner gets thrown in the works (economic downturn, hyperinflation, recession, mass unemployment, market crash, take your pick) things can get difficult. However you can always be sure that in the end the markets will sort themselves out again, we’ll claw our way out of the red, into the back and begin to prosper again.
We’re seeing this cycle in action right now. The recession that struck in 2009 saw ground domestic product fall by 1.5% and unemployment skyrocket. No, in 2013 we seem to have found some firmer financial footing as the UK managed to avoid the dreaded ‘triple dip recession’ even if it was only by the narrowest of margins.
Now this is no means the end of the story for the economic dip in the UK, but it does show that there is light at the end of the tunnel. And that gets business people such as myself very excited. It means that there will be a lot of opportunities to invest in different types areas of the market to invest in and make a profit.
Here’s my views on what’s right to invest in over the next year.
Restaurants
Investing in a local restaurant can be a great idea. As more and more people get a little more money in their pocket, they’re likely to want to eat out a little more. The potential for investing in restaurants is massive and sales are projected to be a record $632 billion this year, up 3.5 per cent from last year. Sounds good, right? Well ye, but this is not a business for the faint hearted, just because you’ve watched the last five series of Master Chef and can swear like Gordon Ramsey doesn’t mean you’re ready to invest. With a business like this there’s a very small chance that you’ll be able to put your money in the pot, sit back at the bar with a glass of champers and watch the punters roll in. Sometimes you might have to get your hands dirty and wash some dishes.
Property at Home
There’s never been a better time to invest in property at home. With the UK housing market being filled with young first time buyers who can’t afford a mortgage due to the high interests and are being forced on to the rental market. Those looking to get a consistent and regular return on their investment can really benefit from getting on the housing market. Choose your buy to let market carefully and sniff out a market that you want to rent your house to. Popular markets include students, young professionals and young couples. If you’re looking for a real big project, then why not choose a beautiful old house that’s in need of a bit of a makeover, turn an old country house into a beautiful modern home and put it on the market. Although it will take a lot of work to renovate and make the house fit for the modern market, you could make a massive profit on your original investment.
It’s not only the market at home which is doing well these days, but abroad too, they’re seeing a bit of a resurgence in the housing market. According to The Telegraph, the time to buy is now. Research shows that house prices in Florida and Spain house prices feel up to 25% however in France they saw a slight increase, meaning that a slow recovery could be on the way. Going into the holiday rental market can be a fantastic investment. Short let your property to locals in the winder and holiday goers in the summer. If the house goes empty for a week or so, why not take a break yourself? The property management Charleston SC has to offer is receiving a lot of attention recently, with fantastic holidaying options, beachside homes and a wealth of activities for all the family to enjoy, it’s no wonder that Charleston is such a popular tourist destination, making it a fantastic place to invest.
Risk
There is always an inherent risk when looking to invest in anything. There’s always the danger that you might not get your money back, but the possibility of getting double back will always whet the mouth of those looking to make the most of their money.
The key is to invest I the areas of the economy that are bound to increase in value after a recession. Housing is a big problem at the moment, meaning that there are those looking for cheap solutions to a long term problem. Renting is a short term solution for this, and so therefore you could provide them with an answer, renting your very nice home off you.
Good luck in all your business adventures, if you’re looking for more business help, why not check out my other articles on Instructables, I’d particularly recommend this one "Improve Your Business By Putting Your Weaknesses Under The Microscope".
I write on a number of subjects and on a number of platforms, so please add me to your circles on Google+ for all the latest news and updates.
The key is to invest I the areas of the economy that are bound to increase in value after a recession. Housing is a big problem at the moment, meaning that there are those looking for cheap solutions to a long term problem. Renting is a short term solution for this, and so therefore you could provide them with an answer, renting your very nice home off you.
Good luck in all your business adventures, if you’re looking for more business help, why not check out my other articles on Instructables, I’d particularly recommend this one "Improve Your Business By Putting Your Weaknesses Under The Microscope".
I write on a number of subjects and on a number of platforms, so please add me to your circles on Google+ for all the latest news and updates.