Investing isn’t easy. If it was, everyone would do it and be millionaires. First, you need to pick what you’re going to invest in, what type of investment, what help you want or need, who you’re going to listen too, and how long you want your investment to be. These are all key considerations to bear in mind when picking and choosing investments. They can be risky, but if you put in the research and have a varied portfolio, the monetary gain can be huge and safeguard your future for years to come from a financial basis.
You should only invest if you have the cash to do so. Never invest money you can’t afford to lose, and never invest money off the back of a dodgy tip. You need to be prepared to take a loss, and be prepared to be patient. If you don’t think you can do any of this, then don’t invest. It’s risky, and many a fortune has been lost as well as made. Weigh up the pros and cons, try to stack the odds in your favour as much as possible, and hope lady luck lands on your side. Here we look at some of the differing investment opportunities and how they can benefit you as an investor.
Real Estate Property investment
Investing in real estate can be a great earner. House prices have skyrocketed recently and there’s no sign of if stopping. It’s great because you can see and own something physical. You’re unlikely to make an immediate loss and you can sit on it for as long as you need to to be sure you get the intended return.
There are different types of investment in real estate. First, you can purchase a property with the intention of a quick turn around. Meaning you do something significant to the house to increase its value and then sell it on to profit from the increase. Building extensions, landscape gardening, internal decoration and modifications are the type of changes which can dramatically increase the property’s worth. Usually, the investor will have some trade experience, be it in building, plumbing or as an electrician. This cuts down on the payment for a tradesperson which could otherwise make this kind of quick fire invest and sale technique untenable.
The other type of property investment is buying a house and hoping for the market to increase, thus leading to a profit. It’s a longer game than the other technique, but if done properly can earn you more rewards. Research is the key, it’s about finding up and coming locations and buying into them early before the house price rises significantly. It can sometimes be hard to find these areas, especially when investing abroad, there are some great companies which can find key locations for you, https://www.prestigeinternational.com/ is a key example or one of these companies. They can take away a lot of the research and leg work, leaving you time to divert to other endeavours.
The best investors know exactly what affects property prices. Local amenities, schools, services etc can affect a property’s price like none other. If an investor purchases before the building of local amenities like this then sells they can make a decent return. It’s all about knowing each individual market, which is why investors usually keep to certain geographical locations as that’s where their expertise resides.
There are other alternatives to this kind of investment, such as building blocks of apartments and renting each one out for huge steady profit. Or selling each property one by one which again leaves the builder with a killer profit at the end.
Property investors usually stick to what they know, but some maintain diverse portfolios which stretch into other investment opportunities.
Hedge funds are pools of cash run by a hedge fund manager, whose job is to strategically invest the cash with a view to increase the original sums invested, known as return on investment. They vary in riskiness and can be a great way to benefit from someone’s expertise when you have little.
They are generally hard to get into because you need a huge initial payment usually in the seven figures to get the best managers. A hedge fund manager can invest in whatever they so choose, provided it was initially agreed upon in the mandate. They can give you a huge return, but it all depends on who you choose to run your fund. Usually, the riskier you go the more money you can earn. You can recognise the success of hedge funds in various ways, but again, only invest what you’re prepared to lose. Manager’s usually use advanced tactics so you’re not just looking at the firm, but the specific manager who will be looking after your money. Check out their past experience and whether their other clients have left happy or consistently out of pocket.
Investing in the stock market can be a great way to make money. Again, it’s risky, but you can stack the odds in your favour by conducting proper research prior to purchasing a company’s stock. Remember, you need to decide on a long or short term position. Long term are usually best for start up companies, as the company will mature over time. If you’re confident in the company then this can be the better bet. However, research needs to be completed to ensure the company truly will grow and hit potential. Only if this happens will you get a return on your investment. Short terms options are where you buy stock, knowing something will happen that’ll drive up a stock’s value, where you can then sell at a profit. The reverse is also true, if something happens that will drive stock down then purchasing it low can result in a great profit.
To get the best deals in the stock market you first need to find a broker. Stock brokerages come in all different formats, being phone based, physical or online. They usually offer advisory services, or sometimes services tailored to you. Be careful, because this will reflect in commission and fees.
Precious goods investment is another good investment for people who like to physically see what they’ve purchased.
Gold is a great buy, with its value fluctuating daily. If you purchase gold and hold onto it for a while, you can make a decent profit. With money steadily declining in value, the price of gold will rise, and with the economy in the current state purchasing gold can be a great way to invest. It’s not the kind of investment to make if you want to turn a quick profit, but as part of a diverse portfolio it can be a shrewd purchase. You can buy differing types of gold, whether in bars or coins, pick your investment wisely, there are many gold scams where you get a sub-standard products for a heavy price. The same applies to silver.
Remember, with the purchasing of physical gold you need to find somewhere safe and secure to store it. Various businesses offer safety deposit boxes where you can store it for an annual fee with other precious items like jewellery.
As well as metals, art can also be a great investment. Again, you get the physical product, which can even brighten up your home, but it can have a great resale value if correctly managed. The art market is at an all time high, in 2014 it reached 37 billion. Choosing the correct at to buy can be daunting, but the best bet, if you’re not an expert, is to buy something you like and admire. Art is subject to variations in favorability. For the moment, works by banksy are worth a fortune, but that could all change in time. Differing art can be purchased here. It’s usually best worked as part of a diverse portfolio, unless you are an art expert yourself.
Bonds And Certificates Of Deposit
These are differing types of lending investment which can be a sure way to make a return. Bonds are essentially a type of debt investments, buying a bond means loaning money to the government or a company, in return for a note which states they will pay you back over a certain amount of time with interest. The interest is the return on investment.
Certificates of deposit are essentially savings accounts but ones where you cannot withdraw your money for a certain amount of time. In return the bank will offer you higher rates of interest on the money saved.
Investing is tough, and picking the type of investment when you aren’t an expert in any of the fields is even harder. It’s best to do a little of everything, known as a diverse portfolio. This limits your risk ratio and leaves you with the opportunity to make money from a few different areas of business. Be careful, analytical, and do your research. Good luck!