For many, they are not thinking about any type of investments due to the uncertainty of the pandemic. It is a volatile time and this can be seen with the way that the stock market in fluctuating. However, during bad times many investors have been extremely successful with some of their business investments.
What To Do With The Extra Money?
Those that do have some extra money may not just want to leave it sitting in the bank where it is not bringing any returns. These are individuals that feel they have enough additional money to weather the financial uncertainties that virus may bring.
Is Real Estate Investment The Answer?
For some the extra money that they have is as a result of saving up to buy their first home. Now they are trying to determine should they stick to their original plan or is now a better opportunity for investing in stocks?
The Housing Market
Recent reports have been released as to what is expected in the housing market in 2020. For some its good news and for others, it isn’t. For new home buyers, this may be the best time to buy. This is because it is indicated that the housing prices are going to go down at least for the rest of 2020. This is not good news for existing homeowners. But for those home buyers who want to get a good deal now may be the time.
What About Stocks?
For those who have never invested in stocks before then now may seem like a precarious time to do so. For them there are too many uncertainties. There are risks with any type of investment. One of the reasons investing in stocks may be more attractive than real estate is diversification opportunities. When you are buying a house you are basically putting all your eggs in one basket. With stock buying, you can spread your money out over different investments.
Resources
At one time new investors were very hesitant about investing in stocks because they didn’t have enough knowledge. Now there are many more resources available that make this type of investment must easier. They can help to take a lot of the guesswork out of this type of investment.
According to the Experts
If you rely on the experts for their advice they are seasoned investors and are used to the risks that come with different types of investments. Some may suggest stocks while others will suggest real estate. They are both forming their options based on what is happening at the time.
Informed Decisions
The ultimate decision is yours but you should never make any decision that is not an informed one. Keep in mind that circumstances are changing rapidly with the current situation. So when you are doing your research make sure it is current and reliable. If you have any doubts then wait until the time is right for you based on your personal circumstances.
One thing you do not have to delay is meeting your tax obligations. If you need assistance with this please be sure to contact me.
