If you’ve found yourself in a strong financial position during the pandemic, you may be looking to make a profitable and relatively safe investment. The economy is in a state of uncertainty, so making any investment can be risky, yet there are a few areas that have been consistently strong throughout the pandemic which gives you the best opportunity for a high return on investment.
As shoppers were forced to retreat during lockdown, consumer habits are likely to have changed drastically. Everyone turned to e-commerce for all of their basic needs and will have enjoyed the benefits that come with shopping at home, making them more likely to shop online for things they would usually buy in shopping centres or on high streets. More discount vouchers, no parking fees and free delivery options are just a few of the conveniences associated with e-commerce. So, with consumer shopping behaviour being likely to change for good, investing in e-commerce stocks will give you a great chance at making some decent profit. Sites like Shopify and Wayfair have thrived during the pandemic, so take a look and see if their stocks are something that you’d be interested in.
Residential or Commercial Real Estate
The demand for housing never ceased throughout the pandemic. The residential real estate market remained fairly consistent all year, meaning it will be quite a safe investment to make. If you’re looking to buy a property and are wanting to take out a mortgage, just bear in mind that many mortgage providers are still not offering mortgages without a 20% deposit. For cash buyers, this puts you in a fantastic position. Many people who had been looking to buy a home are now unable to as a result of economic uncertainty, so providing a fantastic rental property for people who aren’t in a position to buy looks like the way forward.
Whilst the commercial property market still looks unstable, there are a few avenues to explore that have the potential to offer substantial profits. If you’re wanting to go into commercial property management, investing in flexible office spaces is the way forward. People have gotten so used to working from home that the future of working life is likely to change forever. Staff are likely to want the option to be office based some days of the week, and home based others. Flexible office spaces offer a solution to this, as they allow staff from multiple companies to dip in and out when they need. This is also a benefit for the owners of companies as they don’t need to commit to long leases that cost extortionate amounts. So, investing in the future of working life with flexible offices has the potential for great returns.
Any ISA (Individual Savings Account)
Largely, interest that is built in your savings account would be tax deductible, with a few exceptions. However, any ISA, such as the Help To Buy ISA, Lifetime ISA and other Cash ISAs are completely tax free. Although providers can vary their ISA deals in relation to the interest they pay, you know that any contributions from the government will not be tax deductible, helping you to get more out of your money. With a very uncertain financial future overall when it comes to taxable earnings, having money in an account that is protected is a sensible step to take. There is a limit to the amount of money that can be put into an ISA each month or year, dependent on the type, yet it is still a great option to have.
So, there are a few of the most sensible and potentially profitable investments you can make in this current climate. It may feel like you are taking a risk, yet as long as you have researched the market and understand the implications of your investment, you will be in a strong position to assess any risks and remedy them when needed.