Recession-proof investment ideas
In these tough economic times, investing any amount of money can be risky, but that doesn’t mean it can’t be done successfully.
The trick is being creative and looking for opportunities outside stocks and mutual funds.
Now, I’m not a financial expert, or even someone knowledgeable about conventional investing, but I do believe I’ve identified two potentially solid investments – one minor and one major – that are recession proof.
These two investments are all about markups, buying something in high demand and reselling it for a profit. If you’re willing to put in the work, there are opportunities like this everywhere, but here are two specific ones that I’ve identified personally.
Last Christmas season, the Wii was as elusive as the Turboman doll in “Jingle All the Way.” Early-morning trips to obscure retail locations and overbidding on eBay were the only means of obtaining a console last year, and much of the same is projected this time.
Though the Wii is no longer “new,” its low supply maintains its year-round high demand. As we inch closer to Christmas, demand for the game system is likely to skyrocket, which is why I’ve been sitting on an unopened one for three months.
I’m not a high roller. Thus far, my bank account’s only yielded enough interest for a few rides on the mechanical dinosaur inside Meijer. So as far as investment’s go, this was my best option. Wii packages were consistently selling on eBay for $70-80 over retail price in September. So when December rolls around and procrastinating shoppers realize they’re out of options, turning my foresight into an easy $100 or more shouldn’t be out of the question. If all else fails, I’ll just return it.
My second fool-proof investment idea is a bit pricier, but it’s just as safe. Right now, college students are weighing their off-campus housing options for the next academic year. For them, the trick is to start searching early so they can land a house or apartment that isn’t quite as bad as the rest.
College housing is all about making big money off very low supply and growing demand. In places like Bloomington, West Lafayette and Indianapolis near Butler University, students wishing to live near, but not on campus are forced to choose which 80-year-old, overpriced and poorly maintained property they want to call home for the next year.
Many rental property owners in these areas, from my experiences, do little to no renovations or minor maintenance inside or out of their buildings. Why? Because it’s not necessary. There are still many dollars to be made from properties without air conditioning, reliable appliances or lead-free paint. And spending money to address comparable issues only multiplies the monthly rent.
Clearly, I don’t have the means to get into this market. But for those that do, what isn’t appealing about a guaranteed moneymaker that requires little effort aside from showing around potential tenants?
So the economy’s a little shaky, maybe even 7.2 on the Richter scale shaky, but there’s always money to be made in the right places. Here I’ve presented two of my own investment ideas which could actually be useful. No matter how far the Dow falls, people will always play video games, and non-freshmen will nearly always avoid returning to the dorms when possible. Like food and cigarettes, the safe investments are in products that will always be in demand.
