If you’re wondering about the myriad ways to invest your hard-earned cash, then read on, because we discuss and compare five different investment strategies.
First, though, it’s worth remembering that every investment is risky and your savings can go down as well as up. In other words, it’s not as safe as putting your money in a bank, but it can pay off hugely in comparison – especially at the moment since interest rates are so low.
Investing is also a long-term game and usually, the longer you invest, the more money you’ll make. This is often true of the sums you invest too, ie the more you put in, the bigger the profit.
The most popular areas individuals tend to invest in these days are shares and property. But, let’s take a look at each investment strategy.
Property can help you make short-time gains in terms of rental income and long-term gains via capital appreciation, ie property usually tends to increase in value over time.
Another way to profit through property is to buy dilapidated or run-down properties, renovate them to a high standard, then sell on to make a profit. The latter is a mid-term strategy, ie it can take four to eight months to renovate a property, with no cash flow from it in the interim. As a result, it’s best to have a few refurb properties on the go at one time.
This involves buying ‘bits’ of publicly listed companies, then selling them on to make a profit, when the company’s shares have risen. Shares can also pay dividends when they are performing well, meaning you’ll get a ‘bonus’.
You can also invest in Assets, ie fine wines, antiques etc but their values can fluctuate quite considerably in a short space of time. If you sell when the stock price is high though, it’s possible to make a good profit in a relatively short period of time.
A fund tends to invest in themed assets, ie green energy, bitcoin companies, start-ups etc. Investments can be in the form of shares, corporate bonds or similar. The fund may instead be a FTSE 100 tracker where it simply puts money into the UK’s 100 biggest companies. With funds, you can stand to make big profits, but it’s also one of the riskier forms of investment.
There are several of these on the market right now, the biggest of which is Bitcoin. These are still relatively new and their stock price can fluctuate highly so they’re still seen as vulnerable and highly risky at this stage. However, sell at the right time and you can make a fortune.
All of the above can be highly profitable and which you choose depends on how much risk you are willing to take. Of all though, property is the most stable investment, since property is highly unlikely to lose value over time and with rental properties and more specifically, HMOs you have the added bonus of ongoing high rental income.
At Sourced, our team are experts when it comes to financial advice and can help you build a successful property portfolio with up to 30% returns on your investment and a passive income of £100,000-£150,000 per year. Download our Sourced Network prospectus today, to see how we can help you achieve your financial goals.