One of the biggest obstacles that young couples face is not paying a mortgage for their own home. It’s coming up with the down payment. In fact, many couples are moving in with their parents to supersave their earnings to be able to scrape up a down payment and get into their first home.
When you consider how high property values are now, it’s no wonder people struggle. If a home costs $250,000 then they need to have $50,000 in cash ready to go. When you’re paying rent, student loans and other debt, this is almost impossible to come by.
With enough time, you can make some small moves now to be able to help your money grow so you can speed up the process of saving and be able to come up with the down payment for that dream home.
In this article, I will go over some methods that you can invest and save to grow that chunk of money.
1 - Buy Bitcoin
Bitcoin recently smashed through the $20,000 mark in value for the first time in its existence. In 2017 when people were going crazy over cryptocurrency it never reached that height.
Now, some people may say that the best is in the past and that it can’t grow forever, but the reality is that nobody knows. This is uncharted territory for cryptocurrency so there is no limit to how much value they can gain.
Although buying bitcoin 10 years ago was the best possible time to buy, the second best time is right now. Find out the best place where to buy Bitcoin and grab up as much as you can afford to lose. There is the possibility that it loses value and crashes so you want to make sure you don’t lose it all.
If it keeps gaining, then you may find yourself with the down payment ready to go in much less time than you had imagined.
2 - Certificate of deposit (CoD)
If buying cryptocurrency seems to be too high risk for you, then you can play it safe. If you have enough time to save, then a CoD can be the ticket. You get a much better yield than putting the money into a regular savings deposit, but far less than what you can get by investing. The trade off is there is no risk involved. If you don’t mind returns of 2% or slightly more or less, then you can put your money in one of these accounts and grow it slowly and steadily over the course of 5, 10 or 20 years.
3 - Index funds
Even with an economy in recession, the stock market has continued to grow to record setting heights. As such, if you have money in index funds you can be making tidy returns of 8 to 10%.
Usually an index fund gets you around 6 to 8% but the last year or so has seen this increase.
The benefit is that index funds are very safe investments. So, if you want to speed up the process but don’t want to risk losing your money then this type of investment makes total sense.