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I'm 22 years old and have some money saved up, sitting in the bank. The idea was to buy a house, but in my country (the Netherlands) the costs of properties have raised significantly.

If I would buy a house now, I might lose money due to the market crashing later. Therefor, my bet is to wait for 1 or 2 years and hope that the prices lower.

During this time I can save more money and hope to invest this in some assets.

What are some assets that I could invest in? Is this only limited to stocks/indexfunds/cryptocurrencies?

marked as duplicate by Grade 'Eh' Bacon, Peter K., Community Sep 25 '18 at 14:35

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My first thought is that a house is not an investment. It is a means of providing shelter, which is a necessity. Yes, house prices may fall, but so what? That only matters when you decide to sell, and prices will almost certainly rise back at some point (or you'll just have to absorb the loss).

Yes, prices might fall, but they might continue to rise as well.

So what you should be comparing is the cost of buying and maintaining a house versus the cost of renting. If the interest spent on a mortgage is significantly less than the rent, and you plan to stay in that area for many years, then it is in your best interest (financially) to buy a house. If not (because interest rates are high or house prices are high, or both), then yes continue to rent for a while until prices go down or you can afford a larger down payment.

As for what to invest the cash in, there are plenty of questions here that can help with that, but if you intend for the cash to be safe for a down payment on a house, then make sure that you're investing in things where you can absorb a drop.

  • I didn't mean to say I see a house as an investment. I see it the same as you do. But I rather mentioned it so you would know my current situation, as in I need some money as a down payment. – Daan Sep 25 '18 at 14:35
  • This is true as long as there's no downpayment. The downpayment is an investment. At the very least, it has an opportunity cost of not being invested in another vehicle. If the savings on mortgage justify the opportunity cost, then yes I agree with everything you said. – aidan.plenert.macdonald Sep 25 '18 at 18:23

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