These Are The Perfect Investment Opportunities
Perfect Investment Opportunities
The world is changing, and for a few years, you don’t get much rent at the bank any longer.
Take action and invest your money so your capital will grow. Here are the perfect investment opportunities.
Real Estate
Overall real estate is one of the safest investment options. At the moment, there is an interesting situation in the Netherlands. The government is not able to build enough houses because of nitrogen and carbon dioxide regulations. To keep up with the demand the government has the objective to build 75.000 houses per year. The estimation is till 2030 they are not able to achieve this and therefore you know there will be a shortage of houses for another decade. On the other hand, the ECB can’t raise the rent. This is because, if the ECB would raise the rent, countries like Italy and Spain would go bankrupt because they are high debts
So although the real estate prices are already high they will continue to rise for the next 9 years at least if the government doesn’t take drastic measurements. This year the government changed the rules for investors quite a bit. In the Netherlands, investors have to pay more taxes when buying a house, but this will probably not result in declining housing prices.
Stocks
At the moment, around 20% of the population in wealthy countries is holding shares. This is pretty high if you compare it to the decades before, most people just don’t know what to do with their money because banks don’t give much rent anymore. I advise people to put 10% of their wealth in shares and spread it as much as possible; in different companies, in different countries, and in different industries. The most common fault with people holding shares is that they emotionally sell when their stocks are going down.
Keep the faith and wait till shares go back up. When holding shares time is your best friend, you need enough time for the magic to happen. Buy low and sell high is only possible if you are patient. Always have some cash on hand so, you can buy when the market drops, I buy stock in steps and I also sell my shares in steps. I trade on DEGIRO for normal shares and keep several ETFs at Robeco. I will go more in-depth about this topic in this video.
Crypto
A lot of people say that 2021 and 2022 will be the years that crypto will grow even more. I’m not too sure about that, a major crash can come anytime in the crypto world. I would advise putting a maximum of 5% of your wealth in crypto and buy-in steps because it is possible that the moment you buy, the market crashes. If that happens and you can buy more, it’s not too bad. In the situation that you go all in and the market drops it will take forever to get back on track. So my advice: Small steps and spread as much as possible. Buy a little every month, and/or buy when the market drops. I’m having an account on Binance, which is easy to set up, and I’m holding coins like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Stellar Lumens (XLM), and Cardano (ADA).
Start-ups
For a couple of years, it is more difficult to attract a loan from the bank and therefore a lot of startups are looking for money. Investing in startups is a high risks investment while most startups don’t make it past the 2-year mark. Because it’s a high risks investment you have to aim for a high return on investment. The 3 most important investment criteria for me are:
- A focused and well-structured management team
- The scalability of the startup
- The earnings model
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Disclaimer: Investing your capital is at your own risk. You can lose all your capital or a part of it.
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