Regular price spikes in the market force those who have accumulated 500,000 to think about investments. Just keep the money “under the pillow” in 2020-21. unprofitable: inflation in the country is, on average, 9.8%. A year later, for the accumulated half a million can not buy an available at the beginning of the period machine-place or land. In order not to waste savings, you should think about competent investment now.
In 2020-21. Real estate remains one of the priority areas of investment. On average, residential property increases in price by 5-10% annually. Given that the cost of one apartment can not be 500,000, for this amount you can buy a room in a hostel or a part of the common property (half a house or a room in a suite).
By autumn 2020, the real estate market is expected to decline: due to the loss of buyers’ interest in expensive investment, the value of the property will “fall” by 7-9%. This is the most profitable period for investing in real estate: closer to the New Year traditionally there is an increase in the number of transactions buying and selling housing, which will again “boost” the price of property. The same room purchased in autumn 2020 for 500,000 will already cost 515,000 in the winter of 2021.
Of course, not all regions can buy residential real estate at such a low price in a normal condition. However, the amount allows you to invest not only in residential property, but also in the land. The size of the territory depends on the region of purchase: so, in a metropolis for 500,000 to buy real estate or land in the center of the city is impossible. But in rural areas for the same amount you can become the owner of a plot of up to 15 acres.
Investing in foreign currency is a reliable way to earn money. But there is one condition: in order not to “lose” on the difference of rates, you should buy euros or dollars during their downturn. The recommended buying time is the end of summer and early autumn, when demand for foreign currency falls and you can buy dollars or euros at a minimum cost.
Closer to summer or during the New Year holidays to invest half a million in currency is risky: it is a holiday period when people from all over the world actively buy tickets, vouchers and go to other countries, changing the currency of their state to an international one. Therefore, during this period, the demand for dollars or euros is the maximum, and the value of the currency increases by 10-30%.
In addition, when investing in the foreign exchange market, it is worth considering the real economic situation in the country. Thus, in one state, the national currency against the dollar can strengthen, and in the neighboring – to fall by 20%.
The cryptocurrency market is the riskiest, fastest and most profitable way to invest 500,000 in 2021. Since January 1, 2020, the situation with cryptocurrency on the market is ambiguous. Bitcoin has fallen in price, and ethereum “departs” from the consequences of halving (planned reduction of payment for the extraction of crypt).
According to RBC, in 2021 it is most profitable to invest with the crypt with the lowest volume of mining, i.e. to a new, gaining popularity of the currency. By the end of 2020, the most profitable cryptocurrency was Hedera Hashgraph. Its rate increased by 2.14 times. “Silver” at Streamr with growth of 1.85 times, and in the third position is the cryptocurrency Datum, which showed a rate growth of 1.68 times.
Bitcoin is still worth more than 6.9 thousand. U.S. dollars. But since the beginning of 2020, it has lost about 4% in value. Ethereum grew by 22%, but experienced miners are afraid to invest large sums in this crypt. In 2019, the mining premium was reduced to 2 ETH, which reduced buyer interest in ethereum by about 23%.
Stocks and other securities
Buying securities of developing companies is a profitable option, where to invest 500,000. However, there are nuances:
- The greatest income will be for those who have invested in a “young” developing company, which after 2-3 years became known all over the world. These are the so-called start-up projects: when budding entrepreneurs are looking for sponsors to finance their creative idea. If the idea has great economic success, then investors can increase their investments at times.
- For a stable, but small profit (no more than 3% of the amount of investment per year) should invest money in well-known, well-established in the market of the company. For example, in the largest banks: contrary to the opinion of many customers, you can invest in not only deposits, but also in the development of the company itself, buying a part of simple or preferred shares. Another option is to invest in the shares of the oil industry, automotive concern or other reliable enterprise.
Small firms, banks and insurance companies should not be invested in development. Every year, about 7 out of 10 new businesses are closed due to loss or loss of license. The policy of the Central Bank in relation to insurers or creditors that do not meet the licensing conditions is quite strict: every year about 30 companies lose the license of the Central Bank of the Russian Federation.
Starting your own business is the riskiest but profitable investment option in 2020. In the first year after the creation of a personal firm, only 7% of entrepreneurs have real financial success. Another 11% manage to recoup their costs within the next 6 months, and 6% – within three years of opening the company.
Approximately 76% of companies after 3-36 months are forced to close their business or reduce production. Therefore, the investment of 500,000 in the opening of his own business is not always justified. However, there are industries in high demand from 2018. This is medicine and cosmetology.
AFTER: Opening a cosmetics office or massage room is a profitable investment within the chosen budget. It will take at least 2,500,000 to run your own beauty salon. If you have half a million you can rent a room, order couches, screens, mirrors and a cosmetic table and tools for the master, hire staff. Payback of the project with stable employment of the employee is only 3 months, and after a year you can open a full-fledged massage salon.