We’ve all gotten used to talk of inflation, possible recession, interest rate hikes and yet our economy marches on. The markets in general are still a rollercoaster ride but seem to be gaining their legs. We started off July at around 30,000+/- on the DJIA and now we are at just over 34,000 as of this writing. So, with mixed messages from the markets, is now a good time to buy certain major purchases. That answer, it could be.
Have you been thinking of a major trip since the pandemic? Well, now might be a great time to take that extended European vacation. The dollar is strong against the Euro (nearly 20% stronger summer of 2022) and that trend seems to be holding although the Euro has strengthened somewhat. Another positive, fall and winter airfare are projected to be much more affordable than they were earlier in 2022. So, have a look at some destinations and consider a nice trip.
Need new electronics? Many supply chain problems and delays that hit early in 2022 have been resolved, or have improved. We are also mid-holiday sales and stores are very competitive. Many smartphone makers and cellular carriers are offering major deals right now. How about that new smart TV? Well, good news there as well. Most items have seen price increases, but for televisions, prices have dropped up to 15% over 2021. No need to wait on either of these purchases if you need a new phone, cell service, or smart TV.
What about a big purchase like a second home? Sounds crazy, right? Higher interest rates, instability in the equity markets and yet now might be a good time. This of course depends on a lot of factors including your personal situation. One of the biggest factors, is that the second home market is cooling. Prices in some markets are below pre-pandemic levels. If you have the cash flow, intend to keep the home for several years, and are not intending to flip the property, now could be a time to find some values. Again, everyone’s situation is different and you need to consider if you want to be in your desired second home community and whether it will be a long-term asset. All things considered, buying a second home is shaping up to be a strong maybe.
Home renovations are a slightly different story. High labor rates and costly supplies are keeping renovations a challenge. There are also some items such as concrete, glass, and certain appliances that are hard to find. There’s no guarantee that supplies will drop in price in the future, but once we are through the current glut of pandemic-driven renovations, labor and supplies should become somewhat more available. For renovations, it’s probably a good idea to wait.
Even in this mixed-signals economy, some big-ticket items are likely a good buy, or maybe a good buy. Others, are still a wait and see item. If you are in the market for a new phone, a vacation, or even a second home, it’s a good time to at least look to see what’s available.
As an independent Certified Financial Planner™, I can help you meet those goals. Contact me and let’s get started on a new plan. #talktometuesday #Hireaplanner #income #cash #CFPPro #FinancialIndependence #CFPPro #goals #bigticketitem