Forward-thinking is always a good idea when it comes to looking after your finances, and this is especially true when it comes to investment.
If you’ve decided you’d like to start investing your cash in 2020, you need to carefully think about the long-term growth. Remember, even established investors struggle to pick an investment as nothing is ever guaranteed.
Considering the increasing reliance on the Internet of Things, technology may seem like the obvious way to go. However, there are a number of other industries to consider that not only offer huge financial rewards, but other significant benefits too.
Citizenship by investment
Investing in citizenship could be incredibly valuable given the current political climate. As the Brexit debate rages on, it’s uncertain exactly how travel will be affected once the UK finally leaves the EU. As it stands, the European Commission claims that while visas won’t be required, British people will need to purchase a visa waiver to travel to member states after Brexit—regardless of whether there’s a deal or not. However, it’s possible to avoid any potential travel restrictions by applying for citizenship in another country.
First introduced by St Kitts and Nevis in 1984, the specialised investment programme grants citizenship to those who fund the economy with a significant amount of money, provided they pass all due diligence checks. Successful applicants don’t need to give up their existing citizenship, but will still acquire all the rights citizens of St Kitts and Nevis enjoy, for life. This includes visa-free travel to all EU member states for 90 days. In addition to added passport power, the scheme allows you to pass citizenship onto future generations, giving your family the choice of moving to another government. This allows you to take advantage of a better education system, a cheaper cost of living, and a better quality of life in the Caribbean. Aside from St Kitts and Nevis, other nations offering citizenship by investment include Grenada, Dominica, and Cyprus.
Cryptocurrency
Recent years have shown that cryptocurrencies aren’t necessarily the most reliable assets to invest in. Though the value of one bitcoin, the world’s leading cryptocurrency, climbed to an impressive $20,000 in 2017. Recent reports predict that the price of bitcoin will reach record highs before the end of 2019 with “the potential to hit $25,000”. Therefore, perhaps cryptocurrency could still be a smart investment.
There are now significant bitcoin regulations around the world which have helped the market mature and offer the potential for economic competitiveness. Top tips for investors include diversifying the risk by index investing, only investing through regulated professionals, and educating themselves using resources like Coinbase Earn. Aside from bitcoin, other cryptocurrencies to invest in include Ethereum and Litecoin.
Real estate
In spite of Brexit uncertainty and costly tax reforms, investing in property could still be a viable option for 2020. Recent figures revealed that there are just 825 homes for every 1,000 families in England, which means that as demand outweighs supply, investors purchasing real estate for buy-to-let purposes are highly likely to generate a return. HomeLet’s December Rental Index showed that in nine of the 12 regions of the UK, rents increased in December by 1.5% in comparison to the previous year, giving an average monthly rent of £921.
What’s more, a survey conducted by Knight Frank recently showed a 10% increase in the number of European real estate investors most keen to target UK properties. The value of British properties is also rising—as outlined by the Office of National Statistics, the average UK house price was £230,000 in June 2019, £2,000 more than the same period in 2018. Therefore, investing in real estate could mean great returns if the value of property continues to increase going forward.
