If you’ve got money to make long-term investments at the moment, you’re in a lucky financial position. You still need to be careful, though. With economies around the world preparing for a downturn in light of the coronavirus crisis, the stock market is unlikely to be the best place to invest your money for a while.
So, what’s the alternative? The answer isn’t hugely straightforward. One thing that you can do, though, is look for things that are almost certain to make money over the next few years rather than lose it. Invest wisely now, and you could be set for a substantial payout in the future.
If you’re looking for investments that will appreciate over time, there are a few different options. Here, we’ll look at just a few of them.
The first thing you need to think about, if you’re planning on investing in items rather than stocks, shares or bonds, is which items are going to gain money over time. It can be hard to know the answer!. We can, however, identify some items that are definitely not going to appreciate in value.
- Clothes (unless they’re couture… and if you can afford couture, definitely go ahead)
- A new car
- Restaurants (sadly, and especially at the moment as the hospitality sector suffers)
These kinds of items can be relied upon to lose you money the more you use them. Wise investments they are not! (Vintage cars, clothes, and even instruments, on the other hand, could make a ton of money).
It’s bad news for current homeowners: the housing market is likely to decrease in value in the near future, as buyers lose confidence and the economy as a whole takes a serious dip post-coronavirus. This means that house prices across the board are likely to fall.
That’s good news for first-time buyers or those hoping to invest in housing in the near future, though. Strike at the right time, and you could find yourself making a property investment that might have been out of your range just a few months ago.
Added to this is the increase in the stamp duty threshold to £500,000, as detailed by Chancellor of the Exchequer Rishi Sunak in his Summer Statement. With purchases under half a million pounds except from stamp duty until 31st March next year, this is likely to be the best time in years to make a property investment.
Diamonds, it has been said, are forever… and that’s actually something that’s very, very true. Think about it: can you think of a period in the recent past where diamonds have been out of fashion? No, us neither. And yes, investing in diamonds might sound incredibly bougie. But hear us out…
So, why are diamonds a wise investment opportunity? Well, there’s a limited supply to start with. That means that, in the near future, demand is highly likely to outstrip supply. And we know what that means: cha-ching for anyone who has diamonds already. There’s also the rise of new superpowers (like China), where the spending power of individuals is rising exponentially. Read our guide on making money from investing in diamonds for more on this.
Yes, you really can invest in gold… and now might be a great time to do it. This helpful guide to investing is a great way to get started.
As global economies continue to shake in the wake of a pandemic AND market issues, more people are investing in gold. Gold prices have shot up over recent years – so the question right now is whether they’ll increase further still. Alternatively, you can hold off investing until the price dips again – as it’ll always go up. Or, make sure you hang onto your existing gold jewellery as an investment, too!
We all know that both wine and whiskey gets better with age. It makes sense, then, that these kinds of investments are safe bets in the long-term. The whiskey investment market is growing quickly, and we’re even hearing that some schemes could see you receive 20% on top of your annual return every year… nice work, if you can get it.
Aside from the fact that they’ll appreciate in value over time, some things that make investing in wine and/or whiskey a good option include:
- They’re exempt from Capital Gains Tax (thank you for once, HMRC!)
- They’re a diverse investment, meaning they’re not tied to potentially volatile financial markets and are therefore fairly safe to invest in (which makes them a good bet in our current context).
Yes, the brightly coloured stuff that your kids litter the floor with, and that makes you swear when you stand on it in bare feet. It turns out the pain might be worth it, though.
In fact, investing in Lego is officially A Thing, and it’s done by savvy investors the world over. For proof, check out this blog, where one investor details the items he wishes he’d bought in the 00s and how much they’ve appreciated since then (ten times the amount they retailed for, FYI.)
If Lego isn’t your thing, look at other vintage toys or even computer consoles. Polly Pockets, for example, popular in the early 1990s, easily sell for over a hundred pounds for a complete set!
OK, we couldn’t resist. There are very few guarantees in life, and the same is true of fashion. We will leave you with the fact, though, that the value of Hermes’ globally revered Birkin bag appreciated 500% in the 35 years to 2018. We’ll just leave that information here (which is something we wouldn’t recommend you do with your Birkin bag). Also, here’s a handy guide on how you can make big fashion investments work for you in the long-term.
Have you made a wise investment outside the stock market? Got another idea, that we haven’t covered? Tell us all about it over on the forums.
Discover more ways to invest without heading for the FTSE: