Investing Real Estate

Five Opportunities To Consider If You Are Looking To Invest

Five Opportunities To Consider If You Are Looking To Invest

Speak to 10 financial experts, and you could easily get 10 different answers about what is the best investment that you can make. From gold to real estate, foreign currency to the stock exchange, there are so many options available that it can be hard to find a clear consensus on which way to go.

In part, that is because what works for one investor might not work for another. The thrill of gambling on stocks and shares will suit an individual who gets a kick out of taking risks, but for somebody with a much more conservative personality, bonds might be the way to go.

How much capital you have to invest will also play a part. You might have a couple of thousand dollars which is suitable for turning a profit on foreign currency exchanges but won’t get you very far when it comes to property.

If you’re looking to invest, then these five investment opportunities can help you decide where to start.

  1. Gold

Since practically the dawn of time, people have been investing in gold. When you buy this most precious of metals, then you are effectively taking a gamble that by the time you come to sell, the value of gold will have increased and you can, therefore, turn a profit on your investment.

That means there is a certain element of risk involved, but that is true of all investments. Some would even say that now is the perfect time to start investing in gold. The price of gold normally reflects scarcity and fear across the world. If people lose trust in governments or the world economy, then they will turn to gold as a safe investment, which drives up demand and prices.

With so much uncertainty across the globe from Russia to North Korea to the fact that the United States is even viewed as a threat, we may not be far away from a rush to buy up gold as investors seek to protect themselves from turbulence. In which case, you’ll want to be on the gold train.

  • Real Estate

There are two ways in which you can invest in real estate. The first involves a lot of hard work and a not insignificant financial outlay. The second is easier as long as you have enough capital behind you. The success of both is, of course, influenced by the general property market.

Real estate investment method one involves finding a run-down property, buying it for a knockdown price and then turning it into a home you can sell on for a profit. The trick is scouring the real estate market for a property that is available for a fraction of what it should be worth – or what you can make it worth.

You then have to demonstrate the time, patience and financial clout to renovate it into a home that you can then put back on the market, but at a higher price than that which you have spent on it. It’s a lot easier said than done, but if you get it right, the returns can be huge.

The other way to get into real estate is through snapping up property and then letting it out. Building up a substantial portfolio of real estate will secure you guaranteed income all the time you are collecting rent money.

The current economic situation in the United States makes letting a potentially profitable business. With the labor market approaching full employment, most of the population has a disposable income available to them. Many will not be able to afford the down payment or monthly payments that give with a mortgage, however. That means that they have to turn to the rental market, driving up demand in the sector. This article on apartment building loans explains in further detail why it’s a good time to get into apartment letting.

  • Bonds

Bonds are considered the very safest of investments, and it isn’t hard to see why. They almost always guarantee a return, but because of the lack of risk, the profits you make from them are tiny, ranging between three and six percent of your initial investment over many years.

If you aren’t a risk-taking person, then you’ll enjoy the security they offer. The minimal returns, however, mean that you won’t actually be looking at much of a profit, especially depending on how the growth rate of the bond lines up with the rate of inflation.

  • Foreign Currency Exchange

Forex is one of the riskier investments you can make as essentially, you are predicting the strength or weakness of a currency based on future events. What you are doing is making a bet that one currency is going to increase in value against another.

How does it work? Say for example there is a German election coming up with the predicted winner likely to be a party that will improve the German economy or the European Central Bank is due to make an announcement that will strengthen the value of the Euro against the Dollar.

Before that election or announcement, you buy Euro’s with Dollars and when the Euro rises in value, convert them back into Dollars for a profit.

  • The Stock Market

The stock market is one of the most popular types of investments as it combines the opportunity to make money with the chance to show support to companies or industries that you believe in.

Each share that you buy represents a small slice of that business that you own and as the business soars in popularity or value, so do your shares. You can then cash them in at a later date for a significant profit.

The trick to investing in the stock market is trying to find that small company who may currently be flying under the radar but who will be the next big thing. World news can also play a part. Immediately after President Trump pulled out of the Iran Nuclear Deal, the stock prices of all of American’s top weapons manufacturers rose steeply.

Find the right stock to invest in at the right time, and you could be laughing all the way to the bank.

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