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14 answers

The best investment is a diversified portflio including stocks, bonds, real estate, and possibly other asset classes.

2007-01-19 03:31:44 · answer #1 · answered by NC 7 · 0 1

despite all the hoopla on Antiques Road Show about people dragging in their old furnature that they claim is worth a small fortune, what you do not see on that show is all the crap that is dragged in that is worth nothing. It requires a great deal of expirtice and time to invest in antiques and collectables. Most people do not have the fortitude to tackle to task.

You have received a lot of answers that property is a great investment. Perhaps, but are they taking into account the taxes, insurance, maintenance, and expenses associated with buying and selling?

Bank interest is absolutely terrible. Low returns and taxed to the hilt.

A diversified portfolio of stocks offers good returns over a long period of time and is taxed deferred until sold. When they are sold they are taxed at favorable rates as is property. They are a whole lot more negotiable than property. Can be bought and sold at a moments notice. Very liquid.

2007-01-19 02:41:44 · answer #2 · answered by Anonymous · 1 1

Depend on whether you want to turn it into income property or you just want to break even. Is buying on a resort a good idea? Ans: if the # works out, and you can rent it out, anything will work. You can contact the local property management company for more advice. Since u want to live there for 2weeks, it may be a bit messy - not sure, consult a lawyer for how to draft the leasing agreement. Will they manage the rental of the property? Ans: Who are they? I think average property management cost less than $100 per unit. (Depends) How much do the typically charge for maintanance? Ideally we want the rent to pay the mortgage. Ans: Depend on ur property conditions and the renter.

2016-05-24 06:49:13 · answer #3 · answered by ? 4 · 0 0

You do not say what the purpose of the investment is. Without that information, it is impossible to determine what is "best".

Are you looking for something that will give you pleasure to look at, and enjoyment, try collectables or antiques.

Are you looking for something rock solid, with no investor involvement, try interest bearing investments.

If you're looking for maximum leverage, and is willing to invest time with your money, try property.

Etc, etc.

Not having a clearly defined goal is probably the biggest reason people lose money with their investments.

2007-01-23 00:53:17 · answer #4 · answered by Piet Strydom 3 · 0 0

I'm making good profit with penny stock
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Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.

2014-10-22 21:16:35 · answer #5 · answered by Anonymous · 0 0

When people look at investing, there are three main areas to choose from; shares, property or cash deposited in interest bearing accounts.

Why has property proved to be the most effective choice?

In Australia and many other places around the world, over the past 50 years property has averaged 10% p.a. compound growth. (Carefully selected properties have averaged even greater returns). Not forgetting that investment properties also generate an income from rent.

Median priced property in Australia have averaged growing at 2 ? 4% p.a. higher than inflation, making it a very solid investment.

One of the most effective way to build riches is to accumulate a portfolio of investment properties (over the space of 7 to10 years) and then let the power of Compound Interest work to your benefit.

The main reason that property can be utilised more effectively than shares as an investment, is due to the added benefit of being able to highly leverage an investment property.

Leveraging is where you use a small portion of your own money along with a large portion of someone else's money (a bank loan) to secure an investment of a far greater value than you could have, using only you own money.

If you invested $10,000 directly into shares that were growing at 10%, then in 7.2 years they would be worth around $20,000. On the other hand if you had used that $10,000.00 as 5% deposit on a $200,000.00 property and borrowed the remaining 95% plus establishment costs. If this also grew at 10% then in 7.2 years your investment would be worth $400,000.00. Meaning that by leveraging your investment you have gained an additional $190,000.00.
Compounding has an even greater power, the longer it is allowed to work. With the above example, if you were looking at a 21.6 year period, then the results are quite staggering.

The un leveraged shares would be worth $80,000 and the property $1,600,000, a differential of $1,520,000.

It is possible to borrow 100% of the purchase price of a property plus expenses by securing the deposit against your own home, so that you don't need a cash deposit.

Isn't going into debt a bad thing?

There are two types of Debt. Good Debt is where you borrow funds to secure a capitally appreciating, income-producing asset. Bad Debt is where you borrow to buy a capitally depreciating, non-income producing item such as a car, boat or holiday.

There are many different strategies for property investing, which suit different people depending on their current income or financial position.
A combination of using Good Debt to buy property and then allowing Compounding to do its work ? seems to be one of the most effective way of creating wealth. But this is definitely not a "Get rich quick scheme", on the contrary it is a "Get rich slowly" scheme which works most effectively over a 10 to 20 year period. It takes patience and perseverance, but after having spoken to dozens of other property investors, many of whom have become multi millionaires within the space of 10 to 15 years, I am certain that it is worthwhile

2007-01-19 02:27:04 · answer #6 · answered by DemoDicky 6 · 0 2

Historically equities are always the best long term investment. Others may outperform them in the short to medium term but over time they have performed the best

2007-01-21 07:24:47 · answer #7 · answered by Monkeyboy 1 · 0 0

The best investment for every individual is different.

The best investment is the area you know better than other. If you know the companies shares are best bet. If you know money market Bonds are safe.

2007-01-19 09:43:23 · answer #8 · answered by asvanfunda 2 · 0 0

Property...

2007-01-19 02:27:59 · answer #9 · answered by pageys 5 · 0 1

property

2007-01-19 02:29:47 · answer #10 · answered by splendid izza 2 · 0 1

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