Investing in vintage pros and cons. Investment instruments
Hello, dear readers of the financial magazine "site"! Today we’ll talk about investing in real estate.
From this publication you will learn:
- What are the advantages and disadvantages of this type of investment;
- Various options for real estate investments;
- Features of investment in construction;
- How to start investing with a small amount of free funds.
In addition, at the end of the article you will find answers to frequently asked questions.
The article will be liked and will be useful as for those who are just looking for ways to invest equityand experienced investors. Do not waste time, start reading. And perhaps in the near future you will take the first steps to a successful investment in real estate.
What are the main pros (+) and cons (-) of real estate investments, which real estate is best to invest your money in, what are the ways to profit from this type of investment - more on this and more
1. Pros and cons of real estate investments - the main advantages and disadvantages 📑
Each adequate person thinks about profitable investments. It is important that the investment saves money from the harmful effects inflation. It is desirable that the invested funds work, bring additional income.
To achieve the above goals will help investment instruments used for a long time period. Moreover, it is important that they have minimal risk and are very promising. These are exactly what they are real estate investment .
The need for housing in humans arose many years ago and has survived to this day. She will not go anywhere in the future. Therefore real estate is always will be in demand, which means that it is great tool for investing.
Moreover, such investments are a perfectly acceptable option for doing business. To do this, it is not necessary to have huge sums of money. You can invest in real estate at the initial stage of construction. In addition, there is the opportunity to become a member of the housing cooperative by buying a share in it.
Like any other financial instrument, real estate investment has pros and minuses .
Among the advantages (+) of this type of investment are the following:
- for a long period, constant profitability, eg By renting out the purchased property, you can make a profit for many years;
- relative availability of investments;
- real estate has a fairly high liquidity (under certain conditions);
- wide selection of options for investing.
Despite the significant advantages of real estate investments, they, like all existing investment options, are at risk.
The main disadvantages (-) of such investments are:
- demand for real estate is quite tangible depending on the economic situation in the country as a whole and in a particular region in particular;
- property prices are quite high;
- in small towns, real estate demand is quite low;
- high additional expenses - utilities, repairs, taxes.
Moreover, there is an opportunity force majeure . It happens that the price of a property drops sharply due to insurmountable circumstances. for example , apartments in an ecologically clean area will become cheaper if they build a plant or a busy highway near. As a result, the investor not only does not earn anything, but it is also possible to lose part of the invested money.
To avoid most of the problems, it is important to spend before investing. preliminary analysis . During it, possible options for investing are compared and various factors and circumstances that can affect the value of real estate are studied.
Popular options where to invest
2. In which property is it profitable to invest money - 8 popular options + comparison table 📊
Investment experts believe that real estate investments are much less risky than trading on the stock exchange, investing in startups and businesses. The explanation is simple: real estate is very rarely cheaper.
It is most profitable to invest in real estate in large cities. This is especially true for residential premises. In this case, a direct relationship is valid: the larger the city, the more profitable it is to invest in real estate. This fact is connected, first of all, with the difference in liquidity for it in different cities.
But it is important to understand that in each locality you can find your own suitable real estate for investment. To get the maximum profit, you should spend thorough analysis all existing directions and choose the most profitable of them.
Option 1. Residential Property
This option is most available. private investors. The risk of investment in residential real estate is minimal.
There are two ways to make money on the purchase of residential real estate:
- purchase for the purpose of subsequent resale at a higher cost;
- acquisition for renting out .
In any case, when buying an apartment, it is important to pay attention to the following criteria:
- location - in a prestigious, bedroom or student area, environmentally friendly, remote from the city center;
- floor plan, including the presence of a balcony, combined or separate bathroom;
- state - availability and quality of repair;
- infrastructure - how far are kindergartens, schools, clinics, public transport, shops.
In general, any, even seemingly insignificant criterion may be important for buyers:
- view from the window;
- floor;
- neighbors;
- contingent of the area of \u200b\u200blocation.
To buy an apartment (or another residential property) as profitable as possible, you will have to look for it independently without the help of a realtor. However, it is important to check the purity of the transaction. About how to do this in the primary and secondary housing markets, we described in the last issue.
Option 2. Commercial property
This option for more experienced investors. For such investments, both office and retail space of a small size, as well as buildings of a large area, designed to accommodate warehouses, supermarkets, production shops, are suitable.
Such premises are invariably quite in demand. A huge number of businessmen are looking for areas to conduct business and are ready to give their owner rent. Those who purchase commercial real estate, it remains to regularly make a profit on their investments.
Rent is a classic production option. The investor’s profit in this case does not depend on the time spent on work.
It is useful for an investor to know that when choosing commercial property as an investment object, it is required to have a sufficiently large sum of money. Contributions in this direction usually begin with five -seven million rubles.
Option 3. Land
For the acquisition of land requires a smaller amount of money than for the purchase of an apartment or commercial property.
There are a number of advantages of investing in land:
- minimum level of probability of fraud;
- no repairs required;
- lack of payment for utilities;
- the purchase procedure is easier than for other real estate;
- relatively low taxes;
- simple design;
- there is no need to resort to the help of realtors.
All land plots can be classified. for the purpose of use. For short term investments with minimal costs, the areas that are used are most suitable for construction . More long-term investments worth making in land intended for use in agriculture and industry .
But there is also limitations investing in land. Firstly, the state has tightened control over the use of land in accordance with its intended use. Besides, taxes on this type of property have recently been raised.
Option 4. Country real estate
Purchase of suburban real estate with a view to its further resale stably profitable occupation . This is especially true for large cities due to the fact that more and more often their residents are trying to settle down or have the opportunity to relax as far as possible from city noise and dirty air.
There are several options for investing in suburban real estate:
- acquisition of facilities under construction;
- investment in finished cottages;
- purchase land plotsintended for the construction of suburban real estate.
The prospect of investing in suburban real estate increases over time. But when choosing an object to buy, you should pay attention on its location, available infrastructure and communications. Other factors important for creating comfortable living conditions can be of great importance.
Option 5. Real estate under construction
Another investment option is to invest in real estate under construction (new buildings). Despite the fact that the riskiness of this option is slightly higher, but you can also get much big profit.
It is explained very simply. - a property under construction is much less than in the secondary market. Therefore, if you invest at the initial stage, after the construction is completed, the prices are likely to be significantly will grow . As a result, the investor will receive tangible profits.
Risks when investing in real estate under construction are most often associated with the developer. If it is unreliable, it rises risk occurrence of the following situations:
- untimely commissioning of the property;
- complete freezing of the construction site;
- in case of illegal construction or the absence of permits, a complete demolition of the structure is possible.
That is why, before investing in real estate under construction, the investor needs to conduct a thorough analysis of the developer.
It is important to study not only the company's reputation, but also the following characteristics:
- company lifetime;
- the number of completed and commissioned facilities;
- whether there were downtime during the construction process in the past, their duration and reasons.
Successive stages of investing in construction
5.3. How to invest in construction - 5 main stages
Any investor knows that investments according to a pre-prepared plan can increase profits and minimize the risk of investments. Investments should be carried out sequentially, in accordance with the developed strategy. Five stages of this process can be distinguished.
Stage 1. Choosing a developer
A mandatory and important event at the initial stage of investing in construction is developer analysis. It is important not only to find out the name of the developer, but also to clarify what his reputation is. Experts recommend investing only in those projects under construction, the construction of which is carried out by a well-known construction company in the city.
In the process of choosing a builder, it is important to consider:
- company reputation;
- how many facilities the company has already commissioned;
- feedback
- how experienced the company is in integrated construction;
- how many investors does the developer have;
- partnership with credit organizations (banks carefully choose with whom to cooperate, conduct a thorough analysis and do not interact with developers who have a dubious reputation);
- how carefully the developer complies with the law (the main regulatory act is the federal law 214 -FZ).
In Moscow and the Moscow Region, you can trust the following developers:
GK PIK - One of the largest developers in Russia. The company was founded in 1994, it successfully implements major construction projects throughout Russia. Focused on erection affordable housing. Over the years, it was built about 250 thousand apartments with an area of \u200b\u200b15 million square meters. m. It is one of the backbone enterprises in the Russian economy.
A101 Development - the company has built about 500 thousand square meters. m residential real estate, as well as more than 50 thousand - commercial. The developer is also building kindergartens and schoolsinteracting with the budget. Cooperation with several large banks in the framework of programs mortgage lending. The developer is included in TOP-5 in the Moscow region and TOP-15 throughout Russia.
Capital group - A company that deals with the full cycle of construction activities from the analysis of land for construction to the decoration of finished real estate. Completed 71 projects, resulting in the construction of 7 million square meters. m. area. The company's facilities were named the best projects in Moscow and the Moscow region.
Stage 2. Choosing an investment object
Another important step in investing in real estate under construction is choosing the right object. The best place to start is from the area where housing demand is highest.
When choosing an object for attachments, it is important to consider the following parameters:
- infrastructure;
- the proximity of public transport and metro stations;
- other characteristics that affect the degree of comfort of living.
If you plan to invest in commercial real estate, you should think in advance about the ultimate goal of the investor. It will also be useful to draw up a professional business plan.
Stage 3. Negotiation
When the developer and the investment object are selected. Can we start negotiating. It is important to understand that in accordance with the laws of our country, it is impossible to register the rights to real estate under construction.
However, the investor has the right:
- draw up an equity agreement;
- join a building society;
- register an investment deposit;
- conclude a share contribution agreement.
Experts advise you to stop on an equity agreement.
In addition to the method of registering the agreement, the conditions for making funds are discussed. The main ones are the acquisition of by installments (payment by installments) and one-time deposit of funds, but other options are possible.
Stage 4. Study of documentation
All agreements must comply current legislation. It will be useful to check them with the help of an independent lawyer. Many people think that this is a waste of money. But saving on transactions is not advisable.
Stage 5. Conclusion of the contract
The final stage of the transaction is conclusion of an agreement. Before signing the final version of the agreement. It is important to carefully study all of its points.
In this case, you should pay attention to:
- when it is planned to finish construction;
- what are the conditions of termination;
- the price should be fixed, there should be no conditions on the basis of which it will change;
- fines in case of violation of the terms of the contract should be prescribed for each party;
- force majeure circumstances.
It is important to approach the acquisition of real estate under construction with the utmost care and responsibility. It is important to remember that there are risks that can be reduced by clearly observing the sequence of investment steps.
5.4. How to make money on investments in construction - TOP-3 working methods
The investor should know what methods of earning on the acquisition of real estate under construction are the safest and most proven.
Method 1. Rental
Earnings on the transfer of real estate for rent is long term investments. But this option is characterized by a stable level of profitability.
The payback period in this case exceeds five six years old. But do not forget that in any case the areas remain the property of the investor.
In large cities, there is a demand for rent various types residential real estate : luxury apartments for a day, rooms located in sleeping areas, studios for young families and others.
If you take into account commercial real estate , it can be noted that the demand for it from entrepreneurs is also stably high. Especially popular in large cities are premises located in business and shopping centers. The only drawback of commercial space is the need for investment quite large sums of money.
For purchase apartments usually enough 1,5 -2,5 million rubles. If you plan to invest in commercial real estateapproximately 2-3 times large sum.
Method 2. Acquisition of an apartment under construction for sale after commissioning
If you buy real estate under construction for resale, you can pay back the invested funds quickly enough - already through 1 -2 of the year. The faster construction is completed, the more interesting it is for investors. Particularly successful investors in one year receive an income of 100 % of invested funds.
It is important to evaluate other possible options. You can make a quality repair in the finished apartment. As a result of such actions, its cost will increase by about a quarter.
Method 3. Participation in collective investments
Investors who are looking for the safest options for investing in real estate under construction can be advised cooperate with intermediaries . You can also become a member professional investment projectwithout buying real estate at all. To do this, it is enough to join a collective investment fund and receive income as a shareholder.
In Moscow and the region there are several reliable funds that invest in real estate. Including under construction:
E3 investment - here the minimum amount for entry is 100 thousand rubles. When profit is guaranteed at the level of 25-90 percent. All investments in the fund are insured. The investor can independently choose the payback period of the invested funds. from six months before two years old. Investors' funds are invested by professionals in highly liquid real estate, the investor is left to make a profit. This option is passive earnings with guaranteed profit and minimal risk. The company provides information support, as well as free advice to investors.
Sminex - the company invests in finished apartments, as well as objects at the construction stage. The company itself builds houses, as additional services investors get renovation of apartments. In addition, the company takes care of finding tenants. The company builds cottages, residential buildings, commercial facilities. The indisputable advantage of the presented organization, experts call the focus on achieving high quality real estate under construction, as well as their safety during operation.
Thus, there are several ways to make money on real estate under construction. They differ not only in the level of profitability, but also in the efforts that will be required from the investor.
5.5. 4 main risks when investing in real estate under construction
Any investment carries a risk of loss of invested funds. To minimize the chance of loss, you should early to study what schemes scammers use in real estate, what should be afraid of when investing in construction.
Risk 1. Soap bubble
The first way to trick gullible investors is extremely simple. One-day companies sell to trusting investors myth , but not really under construction objects. All work on construction sites are carried out exclusively for eyes.
Often, such projects are organized and carried out with the help of various legal structures. As a result, transactions from the side look absolutely legal. However, as soon as the scammers collect a sufficient amount of money, they disappear with the contributions of investors.
The first way to identify a soap bubble - very low cost of real estate. The investor should compare prices with the average in the area in question. Too low a cost should alert.
It is also important to make sure that information about the developer is available in the official registry. It includes all existing construction companies. Therefore, if the company in question is not included in this list, it is not a real legal entity.
Risk 2. Bankruptcy of the developer
There are many reasons why a construction company may go bankrupt:
- ineffective management;
- misuse of funds;
- lack of finance;
- high costs.
Naturally, the lack of money affects not only the construction company itself, but also investors. In order not to encounter such a problem, choosing a developer, you should focus on large company, which has already commissioned a large number of constructed facilities.
Risk 3. Failure to comply with deadlines for real estate
Another trouble for investors in real estate under construction is construction failure . This risk is especially unpleasant for those who purchase real estate with the help of credit funds. The lender does not care when the property will be commissioned; it is important for him that all debts be repaid on time and with appropriate interest.
Specialists came to the conclusion that every day of failure to meet deadlines eats up 0,01 % of investor income. In percentage terms, this is a little. However, in terms of rubles decent amount, especially when commissioning is delayed for several months or even years.
Risk 4. Force majeure, as well as unpredictable changes in the real estate market
These circumstances can also lead to the loss of part of the funds by the investor. An example of force majeure is the onset of a prolonged economic crisis. As a result, real estate supply can significantly exceed demand. This circumstance leads to a significant reduction in property value - often 10 -20%. Even when the situation clears, investors will already lose some of their potential income.
Also an example of force majeure circumstances can serve natural disasters (forest fires, floods, earthquakes), wars, disasters at industrial enterprises. The only way to protect yourself from such risks is to real estate insurance.
Thus, like any type of investment, investments in real estate under construction are accompanied by various risks. Some of them can be minimized by conducting a thorough analysis in the process of selecting an object for acquisition. In other cases, insurance helps to avoid unpleasant consequences.
6. Practical recommendations for increasing profits from real estate investments 💎
By investing in real estate under construction or finished, any investor seeks maximize total profit. You can do this using the methods below.
Recommendation 1. Make re-planning and coordinate (legalize) it
Redevelopment of a residential property - The simplest option that allows you to make housing more functional without changing its total area. If you carry out redevelopment activities correctly, you can increase the cost of an apartment or house 15-30%.
In this case, it is not necessary to carry out an uncoordinated redevelopment. All planned changes must be registered with the authorities dealing with these issues. Today it is an architectural department in BTIas well as the district administration.
It’s important to know that legislation prohibits some types of planning changes, eg , demolish load-bearing walls, as well as expand the kitchen due to living space, increasing its size by more than a quarter.
Recommendation 2. Attach additional areas
This option to increase the cost is available. for private houses and cottages. There you can build additional floors, convert attics into attics, build a balcony or a porch, and make other architectural changes.
Recommendation 3. Make a quality repair.
If you make a quality repair, the price of the apartment will increase approximately 15 -25%. The profit will be higher if the repairs are done on their own, investing only in the purchase of materials.
It is important to buy quality materials. Buyers may well distinguish good-quality consumables from cheap Chinese ones.
Recommendation 4. Convert residential real estate to commercial or vice versa
Having studied the demand for real estate in a particular area, you can transfer non-residential real estate into residential and vice versa. Profit from reprofiling living space commercial is important for large cities, especially for business districts and passable streets.
Thus, it is important not only to invest in real estate, but also to try to derive maximum profit from it. And how to do this, we described above.
Ways to invest in real estate with a small capital
7. How to invest in real estate with a small capital - 3 real methods 📄
Many believe that not having a large enough amount of money is an obstacle to real estate investment, but this is not so. Competent business people are able to do with minimal means, as well as attract additional amounts. There are several methods to do this.
Method 1. Borrowing
The most popular way to increase investment capital is loan processing to purchase real estate. Today, many banks provide such loans.
By the way, we talked about in one of the previous articles of our magazine.
The investor should take into account the fact that any borrowing involves payment percent. Therefore, in the analysis process, it is important to consider the additional costs. The planned income should cover the interest on the loan and provide profit.
For a loan should apply to large credit organizations with positive reputation.
It is not necessary to take a loan at interest. Many wealthy relatives give loans to loved ones at no extra charge.
Method 2. Attracting Co-Investors
Ideal option for investors who have insufficient capital, - unite . For those who carefully thought out the project and convince others of its effectiveness, there will be no problem finding partners.
Method 3. Choosing the right strategy
Any investor understands that competent investment planning is an important component of their success. Those with insufficient investment knowledge may be advised to seek the help of more experienced investors.
An example of high-quality support for beginners are various investment clubs. Such projects bring together investors who pass on their experience to beginners. Clubs conduct various classes - Courses and seminars, detailing private investment. Considerable attention is also given to real estate investments.
On the subject of real estate investing, the following issues are being studied:
- strategies;
- how to enter the world of investing with minimal capital;
- investments in various types of real estate;
- rent and sublease.
Thus, lack of capital is not an obstacle to investing. Any single-minded person will find ways to implement profitable investment.
8. The help of professionals when investing in real estate ⭐
Help from professionals there is no free. However she helps much increase the level of investment profitability.
Those investors who want to minimize the risksbut at the same time ensure a sufficiently high profit, you can be advised to collaborate with experts in the field of real estate investing.
In Russia, three companies working in this direction can be particularly distinguished:
E3 investment offers to invest for a long time in different types of real estate. This ensures a high level of income. Here is the minimum threshold for entry into the real estate market. Investors can deposit an amount of more than 100 thousand rubles.
Those who wish to invest in this company can immediately find out the level of expected profit. To do this, just use the calculator on her website.
Contributions to an investment company are highly reliable. All types of assets have three types of insurance.
Activo Offers access to the most liquid areas. Investment security is ensured through independent collective ownership. When investing funds from two million rubles, the company guarantees profit in the amount of 11,6 %.
An investor acquires real estate and transfers it to professionals. Each month the company gives its customers full reporting, and also guarantees the safety of invested funds.
Gordon rock Is a real estate agency represented at international market. Investors, using the services of the company, can invest cash in hotels, commercial, as well as residential real estate located abroad.
The following services are also provided:
- purchase of rooms in hotels, premises catering, medical centers, mini-hotels;
- acquisition of real estate for persons of retirement age;
- investment in a ready-made business in several countries of the world;
- consultations and seminars on effective investment.
Thus, in order to invest in real estate, it is not necessary to possess large capital and significant knowledge. It is enough to turn to professionals for help.
9. Frequently Asked Questions (FAQ) 💬
The subject of real estate investing is multifaceted and difficult to understand. Therefore, many investors have various questions on this topic. Especially it concerns newcomers . We will try to answer the most popular questions.
Question 1. Where is it more profitable to invest money: in real estate or in a bank for a deposit?
Often people without experience in investing, having an impressive amount of money, are wondering what to do with it - to buy an apartment and rent it out or put it in a bank for a deposit?
Assume that an investor has 3 000 000 rubles. Consider both investment options.
- If you put money in a bank at 10% per annum, in 12 months you can earn 300 thousand rubles, if the terms of the deposit do not provide for capitalization. About how and how to calculate the contribution with replenishment and capitalization yourself, read in a separate article in our journal.
- Now suppose that the investor bought for his funds one-room apartment in Moscow. Renting it out, he will receive 25 thousand rubles a month. As a result, over the year the same amount will come in 300 thousand rubles.
Comparing the two options, do not lose sight of the fact that in the case of a lease there are additional costs - for utility bills, taxes, repairs other. In addition, you will have to spend a significant amount of time searching for a suitable property, settling tenants.
It would seem that deposits are much more profitable than buying an apartment with subsequent rental. But this is not entirely true, analyzing the example, we did not take into account the presence of inflation. Depreciation of funds gradually eats up savings.
It is worth considering the important investment rule. - you can not trust the official data on the level of inflation. In fact, money depreciates much faster. It turns out that in the best case, the interest on the deposit will block inflation, but it is unlikely to be able to earn on such investments.
At the same time, property prices rarely fall. In the long run, its value is growing. Also, rental prices are constantly rising.
Thus, it turns out that when considering the short-term period on deposits, you can earn more. However, given the fact that apartments are becoming more expensive, it can be noted that real estate helps counter inflation more effectively.
Question 2. What real estate is more profitable to rent: residential or commercial?
Some investors purposefully analyze the real estate market in order to understand which objects to rent out more profitably - residential or commercial. In general, it is impossible to unequivocally answer this question, since there are commercial and financial risks in the market.
For large investors, usually preferred commercial real estate . Experts believe that such investments pay off much faster. However, due to their characteristics, they are more difficult for beginners.
Concerning residential real estate , it is beneficial to rent it out to those who received it without cash costs, for example, by inheritance or as a gift. When buying such a property, it will pay off for a very long time.
Worth understanding that investing in commercial real estate is rather risky. This is due to the fact that they are more affected by the situation in the country's economy, for example, the onset of the crisis period.
Investments in commercial real estate are subject to other types of risk that are difficult to account for. As a result, errors may be made in the process of calculating the required capital, which ultimately will lead to an increase in the likelihood of buying an object with low liquidity. Such investments may not only not make a profit but also entail significant losses .
However, speaking of financial relations, it can be noted that in the case of commercial real estate, they much more stablethan the owners of residential premises with their tenants. Making a lease for commercial real estate, the tenant is interested in keeping it in good condition. This is due to the fact that it is the condition of the areas where the activity is carried out forms an opinion about the company among customers. Tenants rarely try to maintain it in the best possible condition.
Apart is the issue of income from rental different types real estate. Everyone knows that when comparing premises of a similar size, commercial facilities bring a much higher income than residential.
Note! When buying a property, the investor must analyze what potential income will it bring . This is especially true of those objects that are already leased. The forecast of the profitability of the property at the time of its acquisition is quite possible.
Should also compare efforts required to manage multiple properties. Naturally, objects residential real estate (even if there are several of them and they are located in different ends of the city) it is much easier to manage than, for example trading areadivided into parts and leased to several businessmen. It is even more important that commercial real estate is leased for a much longer period than residential property.
Some investors will argue that today real estate management can be transferred to specialized organizations. But this again requires additional cash investments.
What conclusion can be drawn from here?
Thus, renting commercial real estate is more profitable. However, this requires an investor to make a significant investment of money and effort, as well as high-quality knowledge regarding the market conditions.
Investments in residential real estate are available to a wider group of investors. Money capital for this will require much less. At the same time, such real estate can become a source of almost passive stable income for a very long period of time.
But still, investors who have at least minimal experience in investing in real estate can be given important advice. Before making a choice in favor of any property, it is worthwhile to conduct a thorough analysis of all possible optionspaying attention to both residential and commercial real estate.
Question 3. How to buy real estate as cheap as possible?
It is unlikely that anyone will doubt that real estate is a profitable option for investing funds. Nevertheless, there are ways to significantly increase the bottom line. To do this, you can use the tips on how to buy real estate as cheaply as possible. With a good combination of circumstances, you can save about 30 % of the cost.
Consider the possible options:
1) We discussed in detail acquisition of real estate under construction . Such investments are profitable and have good profitability. However, the level of risk in this case is much higher.
Unfortunately, it is possible that the construction of the house by the developer will not be completed on the appointed day. Moreover, there are cases when houses have not been commissioned for many years. In such situations, it is often unclear whether the construction work will be completed at all.
In most large cities there are several associations of deceived equity holders. These people, for various reasons - for personal needs or for the purpose of investing funds - bought apartments in houses under construction, but in the end stayed with nothing . Sue with construction company it is not easy, especially if she declares herself bankrupt.
2) Another option to reduce the amount of investment - acquisition of real estate without repair . The investor invests in finishing work, after which the price of real estate immediately rises. With a successful set of circumstances, conducting high-quality repairs using high-quality materials, you can quickly get about 15 % arrived.
3) Investors with experience in the real estate market are using even more interesting ways to save money on acquiring an investment. For example, many of them acquire property put up for auction for various reasons .
If companies are recognized, their creditors are interested in returning the money owed to them as soon as possible. Therefore, often bankrupt property is put up for auction at a very greatly reduced prices. About bidding and, we wrote a separate article.
4) In connection with the occurrence of a large number of defaults on mortgage and other types of secured loans, credit organizations often seize property from their customers that is a guarantee of repayment of funds under a contract. Such real estate is also sold at low prices, since banks are important in the speed of return of their own funds.
Where to look for such offers:
On the Internet you can find specialized sites on which information is collected on the sale of real estate objects confiscated from debtors, as well as seized as collateral. Often, investors here find very interesting options for investing.
In addition, information on the sale of collateral as well as confiscated real estate legal entities contained in the relevant register for bankruptcy.
Question 4. What books on real estate investment should a beginner read?
Any questions related to the field of finance require people who deal with them with certain knowledge. Therefore, it is important to study specialized literature on topics of interest. Real estate investment is no exception.
Book 1.
Many professional investors believe that the best book on real estate investments was created by Robert Kiyosaki. It is called quite trivially - “Investments and Real Estate”.
Also in this work is a huge number of tips that do not lose their relevance, and other stories that professionals share with the reader.
Book 2.
This is the perfect book. for newbies in real estate investment. In an accessible form, it is described here, profitably and correctly.
The work contains detailed qualitatively structured instructions on what actions a beginner needs to perform.
Anyone who wants it, even without a financial education, will be able to extract a lot of useful information from the book, easily reading it.
Book 3.
This book is ideal for those who are a little familiar with investments. She will help to learn more about how to work with investment objects.
The reader will learn how to choose the most profitable property, how best to carry out work with a huge amount of necessary information and documents.
Of great importance in the work is given to how to maximize profit.
Book 4.
Instead, the work contains useful information on how to invest in real estate without risking losing personal money.
In addition, it describes how to get good returns on such investments.
Book 5.
The book tells what there are ways other than resale for making money on real estate investments.
After reading, the investor begins to realize that making money through such activities can be done in a huge number of ways.
10. Conclusion + video on the topic 🎥
Thus, real estate investment is a promising way of passive income. It does not matter how much money the investor has. In today's world of investment, you can even start earning with small investments.
Nevertheless, it is important to constantly engage in self-education, try to find out the maximum of useful information.
And the video - “How to create inexhaustible income in the real estate market”:
That's all for today. Successful and profitable real estate investment for you!
If you have any questions or comments on the topic of publication, then leave them in the comments below.!
Problems of investing in small towns
Attracting investment in small cities of Russia will also provide them with competitive advantages and will be a powerful means of their growth. In general, the investment attractiveness of small cities depends on the investment attractiveness of the capital and large cities of the constituent entity of the Russian Federation, of which they are a part. And for the most part they are not interesting for investors. Own investment potential of small cities is insufficient, therefore there is a need for external investment resources. The main problems hinder the increase in investment attractiveness of small cities in Russia:
- 1. Adverse demographic situation and age structure
- 2. The dependence of small towns on city-forming enterprises
- 3. The low level of development of social infrastructure
- 4. The backwardness of industry
- 5. Low competitiveness
- 6. High depreciation of fixed assets
- 7. Low salary
Ways to increase the investment attractiveness of the city
To increase the investment attractiveness of small cities in Russia, it is necessary to develop federal and regional programs to increase the investment attractiveness of small cities. Measures taken to increase the investment attractiveness of small cities should be systematized and comprehensive, combining the efforts of all levels of government, as well as the heads of enterprises of small cities of the Russian Federation.
The main measures to increase the investment attractiveness of small cities:
1. Creation of large enterprises and socially significant objects in small cities.
As foreign experience shows, some of the world's largest companies were created in small cities, which eventually turned from places where young people left in search of a better share, to vibrantly developing cities and towns that attract workers from all over the country.
- 2. Creating jobs in small towns, training and attracting highly qualified personnel, for this:
- - Creation of technoparks and scientific towns, business - incubators;
- - development of affordable housing programs and the provision of housing owned by the enterprise;
- - improvement and creation of social infrastructure.
- 3. The provision of state support to investment entities operating in the territory of small towns. State support should be provided by the constituent entity of the Russian Federation, which includes a small town.
The main forms and methods of state support of investment activity:
- · Examination of investment projects: the examination is carried out to determine the degree of influence of the results of the investment project on social economic development small cities and the solution of its pressing problems.
- · The provision of tax and duty benefits: benefits for regional taxes and corporate income tax to the extent established by the legislation of the Russian Federation and the legislation of the constituent entity of the Russian Federation.
- · The provision of subsidies from the budget of a constituent entity of the Russian Federation, which includes a small city to recover part of the costs:
- - to pay interest on loans received for the implementation of investment projects;
- - to pay lease payments under financial lease (leasing) agreements concluded for the implementation of investment projects;
- - to pay coupon payments on bonded loans aimed at the implementation of investment projects.
- · Provision of an investment tax credit: investment tax credits may be granted to subjects of investment activity.
- · Provision of state guarantees: subjects of investment activity during the implementation of investment projects may be provided with state guarantees at the expense of the budget of the subject of the Russian Federation on a competitive basis.
- · The provision of budget loans: to provide state support to investment entities in the implementation of investment projects aimed at solving the priority tasks of the socio-economic development of the city, budget loans can be allocated from the budget of the subject of the Russian Federation on a repayable and reimbursable basis.
- · Provision of budget investments: budget investments from the budget of the constituent entity of the Russian Federation are carried out by financing objects owned by the budget of the constituent entity of the Russian Federation and equity participation of the constituent entity of the Russian Federation in the authorized (joint-stock) capital of legal entities.
- 4. Ensuring accessibility and transparency of information on the investment potential of small cities.
Information on the investment potential of small cities of the Russian Federation and state support Entrepreneurship development in small towns must be published in national and international publications, which will attract both Russian and foreign investments and provide an opportunity for the investor to get acquainted with the competitive advantages of small towns in Russia. Holding “round tables” with the participation of interested parties - to promote small cities and attract investment.
5. Holding competitions of investment projects intended for implementation in small cities and holding investment fairs of small cities of Russia.
Holding open, free tenders for investment projects prepared for their implementation in small cities of the Russian Federation for domestic and foreign organizations, and individuals. As well as holding investment fairs in small cities of Russia to attract investors, by demonstrating investment attractiveness.
6. Development of programs to increase investment attractiveness by the authorities of small cities in accordance with the competitive advantages of the territory, taking into account the specifics of the subject of the Russian Federation, of which they are part.
Each subject of the Russian Federation has its own specific features regarding the availability of natural wealth, industry, the presence of large enterprises on its territory, etc. It is in accordance with the characteristics of the subject of the Russian Federation, which includes one or another small city, and a program should be drawn up to increase the investment attractiveness by the authorities of small cities.
7. Development of federal programs to promote the socio-economic development of small cities in Russia.
The programs correspond to the priority tasks of the country's socio-economic development and will provide a multilateral effect in all spheres of society.
8. Training of executive authorities in small towns to attract investors.
Executive authorities often lack marketing knowledge in the city. They do not always possess the technologies of working with investors and the correct positioning of the city; they do not always look at their cities with the “eyes of an investor”. It is also necessary to conduct seminars with the population on the basics of entrepreneurship in small towns.
9. Active study by public authorities and business leaders of positive foreign experience in attracting investment in small cities and its further application.
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Today, foreign investment significantly affects the economic development of a large number of states. The size of investments from abroad is increasing every day, while the role of international production in the global economy is greatly enhanced. It is safe to say that foreign investment has a contradictory effect on the economy of the host country. The influence is not only positive, but also negative.
pros foreign investment in the economy of the country consist of several aspects. First of all, it should be noted that foreign investment is a wonderful source of financial resources. Due to the fact that the host country is constantly replenished with finances of foreign origin, its productive capabilities are constantly growing. At the same time, there is a great influence on the amount of accumulated capital. It should also be noted that when investing capital in the economy of another country, a peculiar exchange of experience occurs, followed by the transfer of existing technologies to leadership skills.
Industrial production technologies begin to develop on the territory of the host country, which in turn has a significant impact on the level of its technological development. After the technical level of the country is raised, for a high-quality production process it will need the availability of highly qualified workers. Consequently, with the help of foreign investment, the demand for highly qualified labor is significantly increased, and the welfare of citizens is increased through higher salaries by investment organizations compared to local companies.
Foreign investment books describe another positive feature of investing from another country, which is a significant increase in the competitive ability of domestic products. After investing, the quality of manufactured goods increases to a large extent, which entails an increase in competitive ability. At the same time, it can be easily brought to the world market, expanding foreign economic relations. These are the most significant positive aspects of the introduction of foreign investment.
In addition to the significant positive impact of foreign investment, there are a number of negative aspects. It was previously noted that foreign capital leads to an increase in demand for highly qualified employees, as well as an increase in the standard of living of the population due to large salaries by investment organizations in comparison with local enterprises. In this regard, local companies lose a significant share of profits through greater competition. Foreign investment is mainly aimed at stimulating intermediate production, because it creates the greatest demand. Local enterprises are obliged to create additional production capacities, because they would not be engaged in the production of certain products if there was no demand from foreign companies. Another negative aspect described in foreign investment magazine, which affects the economy of the host country, is a kind of crowding out of domestic capital by foreign investment, while local companies are also being squeezed out by more developed companies from abroad. In other words, local companies are deprived of the opportunity to develop and break into global markets with their products. However, not everyone unambiguously perceives this effect, because foreign investment can also have a positive impact on the development of national companies through increased labor productivity, the transfer of the latest technology, which is a positive impact on the development of the host economy. In addition, the amount of both imports and exports can be significantly reduced, because for the domestic market there will be much more suitable products manufactured at an enterprise invested from another country.
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It should be noted that the consequences of introducing foreign capital can be not only economic. For example, the culture of the host country may change significantly.
In conclusion, it is worth noting that for the development of the country's economy it is necessary to attract foreign capital. However, it is worth taking into account both the advantages of its use and its disadvantages. Each country individually must predict the consequences of attracting foreign capital and consider the need for these actions. The influx of foreign investment in Russia regulated at the legislative level, which significantly reduces their negative impact.
Internet investment Today is starting to gain more and more popularity. And more and more people, besides browsing the Internet for games, watching movies and hanging around social networks, begin to look for ways to earn and invest in order to create a good one.
In this article we will analyze the features of investing on the Internet, its main advantages and disadvantages, as well as the main options for online investing.
Internet Investment Features
No matter how strange it may be, but the Internet, in addition to entertainment and information, can give you much more than you think. It:
- firstly, decent, which will not depend on your participation;
- and secondly, confidence in the future and more free time that you can spend on your own.
So that you have the opportunity not to work tomorrow, you need to work hard today. Invest your time, labor and money not on earning income now, but on obtaining a decent income over time. Here, all your financial and physical actions should be carefully thought out, clear and consistent, and most importantly competent.
It must always be remembered that there is risk everywhere, even with. And also, without effort you will not get a good income. All ads promising high income without the least effort, nor anything but a scam is not.
Pros and cons of investing on the Internet
Like any financial instrument, the Internet has its advantages and disadvantages.
To plusesrelate:
- the ability to earn money without leaving home and ease of management, as well as a free work schedule;
- high profitability and low investment amount;
- the ability to withdraw funds in any amount and at any time.
The main disadvantageinvesting on the Internet is the risk of losing your capital, which is associated with inefficient activities investment company, hacker attacks, bankruptcy of firms, unforeseen circumstances and mistakes of the investor.
Basic requirements for a novice investor
The goal of any investor is to achieve with the least loss of their capital. And this requires mandatory preparation, and not only the necessary amount, but also special knowledge and skills.
- Internet connection
This is the very first and necessary thing that a newbie should have when investing online. In addition to accessing the Internet itself, the investor will also need payment systems through which they will make their financial transactions.
- Basic economic knowledge
Never invest your money until you have learned at least the basics of investing. Unfortunately, investing is not taught either at school or at the institute. Therefore, you have to do self-education. You can start the study with thematic blogs and forums, and then move on to specialized literature.
- Psychological stability
What, what, but the right psychological attitude and nerves of steel, you will need the most. You must be prepared for everything: and the fact that you will not receive profit today, that you may not receive it at all.
Make sure that greed and fear do not guide your actions (this way you will only lose your capital). Each of its actions should be based on a cold and sober calculation. In all circumstances, you must observe sober composure.
You should always be prepared for the loss of your capital. This is an integral part of investing. There is not a single investor who would not lose his money. Take this psychologically and philosophically: WITH EVERY LOSS OF YOUR CAPITAL, YOU WILL ONLY BECOME SMARTER, WISER AND EXPERIENCED. THIS IS AN INVESTMENT IN THE FUTURE WHERE YOU WILL NOT MAKE SUCH MISTAKES MORE !!! The main thing is to draw the right conclusions.
- Assessment of their capabilities
You should be sober about your investment. And to understand that more than your financial instrument can give, you will not receive. You must determine your investment objectives in advance and for how long you are ready to place your capital.
Ways to invest on the Internet
Below are the main and most reliable ways to invest on the Internet. From them you can choose the most suitable for yourself.
Method 1. Forex Trading
Many have heard about Forex, but few people know how this investment tool works.
Forex trading - This is an international currency market where traders earn on the difference in exchange rates.
Maybe everyone who has time, money and desire. Profit does not have a “ceiling”, it can be like 5%, but 100-150%. Better start earning with a broker. who will explain everything to you, tell and tell you.
Method 2. PAMM Accounts
When investing in PAMM accounts, the investor transfers his capital in trust to the manager, who is used to conduct operations on various exchanges. In other words, this is when an investor transfers his funds to an experienced trader to conduct financial transactions. for which he pays him a pre-agreed remuneration.
The capital transferred to trust may be used in various markets, both in the Forex market, as well as in the Stock Market and other markets.
The investor himself, with this method of investing, must simply correctly choose a manager. no further action is required from the investor. He can sit quietly and wait until profit begins to flow into his account.
Method 3. Trading binary options
Binary options - This is such an investment tool, where transactions are made on the principle of "all or nothing." Here, the possible gains and losses are known in advance, and are limited when concluding a transaction.
It is distinguished by its simplicity and clarity. it doesn't matter here. how the price will change. the investor makes a profit. which was negotiated in advance.
The liquidity of binary options is at a high level and it is based on some kind of financial asset: currency, securities, precious metals and so on. this allows investors to diversify risks.
The disadvantage here is that you need to make a lot of effort and master a huge amount of knowledge.
And the main advantage is that even slight fluctuations can bring significant profit, and here you can develop, apply and test your trading strategies.
Method 4. Investments in stocks on the Stock Market
Every investor who decides to invest in the company's shares (even if they are called “blue chips”), must understand that they are able to generate income only with long-term investments.
There are two ways:
- Speculative trading. Buy cheaper sell more expensive. There are increased risks due to unstable quotes and volatility.
- In the form of dividends. ANDshareholders of such shares are paid once a year. You must first find out which stocks will be more profitable to invest.
To start trading stocks, you first need to get an electronic digital signature, and only on the site or a special program. which is specifically provided by the broker.
The benefits with online investment in stocks, it is that speculation can make good money.
A disadvantage - This is market instability and the need to pay taxes (13% for individuals). And yet, withdrawing profits to e-wallets is almost impossible.
Method 5. Investing in Gold
You can invest in gold even through WebMoney. Account currency is measured in WMG. When buying gold in wmg form, several methods are used: online exchangers, automatic exchange wm.exchanger.ru, transferring money to the account by transfer. investor can exchange wmg for bullion.
When investing in gold, it should always be borne in mind that its purchase in physical form is taxed, in contrast to the electronic method of investing.
Method 6. Investments in precious metals in the form of mandatory medical insurance
On the Internet it is possible in the form of compulsory medical insurance.
Anonymous metal bills (Compulsory medical insurance) open virtually or in a bank by depositing precious metals into such accounts, which are converted into monetary units.
MHIs are not taxed, and opens for a period of 12 months, after which it can be extended. Profit depends on changes in the value of precious metals. Since the price of precious metals rarely decreases, in the long run they can bring tangible income.
Method 7. Investing in websites
Now it has become very popular to invest in websites that are either independently created or purchased ready-made.
A site will start to make a profit only after the site becomes very popular. And a lot of time, effort and money will be invested in it. If the site is not constantly being developed, then it will very soon lose visitors and stop generating revenue.
Method 8. Investing in startups
Investing in startups does not guarantee a profit. A startup can either make a profit, or just pay off, or go broke. The amount of funds invested in startups is unlimited. The amount of investment should come from an objective assessment of the startup itself and its team.
Investing in new resources is much more risky than in already developing projects, but with a favorable outcome, they can bring much more tangible profits. And it is better to choose those projects in which the investor develops himself.
After the startup is selected, it will be necessary to discuss with its owner the form of investment and the method of generating income.
Method 9. Online Store
Today you can trade anything on the Internet, from goods and services to various information and sites.
True. opening a store on the Internet requires a lot of money or attracting investors who have to pay dividends.
Method 10. Domain Investing
Due to the huge number of sites and the fact that all the beautiful domains are already taken, they started buying / selling domain names. Suppose if today you purchase a domain for 1000 rubles, then after some time you can already sell it for 20,000 rubles.
Domains can only be purchased at online auctions or from their direct owners. Still here you will need to manage to sell at a better price.
Method 11Issuing money to an online lending service
Here, the investor must choose a service with the most suitable conditions. He himself cannot dictate them. After which he transfers the loan money to the service with an interest rate of up to 25% and for a period of 6 months to a year (most often).
Method 12. Private Online Lending
You can lend on the Internet either directly or using the loan exchange offered by the WebMoney electronic money service.
The investor examines the list of borrowers who place their applications on the exchange, and select the ones suitable for themselves. In order to get good profit here, the investor must spend heaps of time working and minimizing risk.
Method 13. Investing in HYIPs
HYIPs (HYIP) translated into Russian mean an investment program that brings high returns. In simple words, this is a project that promises revenue. And therefore, there is a high level of risk.
In the understanding of many, hype is a fraudulent scheme. Some, however, manage to earn a decent amount of money here.
Something like that. The basics of investing on the Internet and the main ways of investing were discussed above, although in fact there are much more. You just need to carefully study all possible methods and choose the most suitable for yourself. It’s also very important to be able to filter them, so as not to run into scammers.
Also, you can express your opinion about the article and the site itself in the comments, indicate the shortcomings of this resource.
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We all save up money. A schoolboy is saving for a new smartphone, a student for a car, a young family for an apartment (or more often for a down payment for a mortgage), a worker for vacation, and a pensioner for a funeral. And no matter how tense the economic situation is, money is somehow accumulating. Otherwise, where do so many iPhones and expensive cars come from?
But most people do not realize that when the accumulated money lies under the pillow, its amount is imperceptibly reduced. Every night a “killer of savings” comes and steals a small part of our savings. And the name of this killer is inflation.
The official inflation rate in Russia for 2015 is almost 13%. But we know that he is not underestimated (especially those who remember the prices of products in 2014 understand this very well). The real inflation rate for 2015 was definitely more than 20%.
Thus, all our accumulations depreciate at a rate of at least 20% per year or 1.65% per month. So, now most of the ways of investing help not to increase your funds, but to at least slightly compensate for inflation.
In such a situation, it is very unwise to keep money under the pillow. Any free money should work. But how to invest them as reliable and profitable as possible?
Investing is not so difficult.
I think everyone imagines what investing is. When investing, you make your money work. That is, you invest money, hoping in the future to get even more money.
But do not forget that investing entails risks. Instead of the expected profit, you can get a loss or even lose all your money.
Therefore, the main rule of investing is risk diversification. According to this rule, you must split your savings into parts and invest them in different investment projects.
For example, let your investment portfolio be 100,000 rubles. Then you need to choose some suitable investment tools for you. Suppose you choose mutual funds, PAMM accounts and backing, and HYIP projects. Now you will need to distribute your portfolio between instruments depending on how much you are willing to take risks.
Suppose you are set to moderate risks and distribute money like this: mutual funds - 40%, PAMM accounts - 40%, backing - 10% and HYIP projects - 10%. Now you need to apply the principle of diversification within each chosen investment method.
That is, you will need to select several different PAMM accounts and distribute your 40% of the portfolio between them. The same thing needs to be done with other chosen investment methods.
In order to comply with this rule, you need to use several tools that can increase your money. I have selected the 12 best ones for you.
Compare with each other the 12 best ways to invest.
I have not only selected for you the 12 best ways to invest, but also compared them with each other. For comparison, I chose several parameters that I decided to evaluate using a 10-point system, where 1 is the lowest score and 10 is the highest.
Comparison of the best ways to invest.
The following options were selected:
- Simplicity. This parameter characterizes how easy it is to deal with this method of investing, understand the principle, find a suitable company and make a contribution.
- Profitability. Here, the average return on investment will be estimated. Most often, this and the following points are interconnected: the higher the yield, the higher the risks.
- Reliability. This parameter characterizes the riskiness of the analyzed investment instrument.
- Entry threshold. Shows what is the minimum amount you can invest.
- Liquidity. It estimates how quickly you can withdraw your deposit, and what losses await you with a premature withdrawal of money.
- Passivity / activity - This parameter shows how passive this type of earnings is. That is, 10 points mean “invested and forgot”, and 1 point means that you will have to spend extra time and energy to get the maximum profit.
Of course, all my assessments will be subjective, and I think that many readers will not agree with them.
1. Bank deposit.
A bank deposit is the most understandable and easiest way to invest for an ordinary person. Even any grandmother understands how everything works. After all, even in the Soviet Union, in which there was no investment, people kept money on passbooks. And one of the heroes of the popular Soviet film called on fellow citizens to keep money in savings banks.
All you need to do for a deposit is to choose a bank and come there with a passport and money. What could be easier? I put 10 points.
At the same time, the yield on a bank deposit is not high. At present, deposit rates range from 7% to 12.5%. I think this is one of the lowest returns of all investment methods. Deserves 1 point
But you can be sure of the reliability of your contribution. Deposits are insured by the state. Even if you plan to invest a large amount, in order to insure that your bank will be licensed, you can split the amount into small parts and invest in several banks. In this case, even if the bank is deprived of a license, and your deposit was less than 600,000 rubles, then you will be compensated for both the deposit and interest. 10 points for reliability.
You can start investing with an amount of 10,000 rubles or more. This is not a lot at all, so you can set an entry threshold 8 points.
In most cases, you can withdraw money from a deposit at any time. But with an early withdrawal of money, you will lose most of the profit. 7 points for liquidity.
This type of deposit belongs to the category of “invested and forgotten”. All you need to do at the end of the investment period is to come to the bank and collect your money. Well, or roll over the deposit. 10 points.
Pros:
- High reliability.
- Availability.
- Low taxes. You have to pay 35% of the taxable income, which is calculated by the formula: all income minus the refinancing rate.
- Predictability of results.
Minuses:
- Low profitability.
Output. This type of investment is more likely not to increase your money, but to at least somehow compensate for inflation. In any case, if you do not want to take risks at all, this method is better than just storing money under your pillow.
2. Mutual investment funds (UIFs).
For an ordinary person, investing in mutual funds seems not a very understandable undertaking. To understand this, try to explain to your grandmother at the entrance that you are buying shares in the fund of a management company that invests in assets.
The choice of mutual funds must also be taken seriously, studying the statistics of different funds. After that, you need to go to the office of the company or its agent. For simplicity I’ll put 6 points.
Profitability here depends on the type of funds and on the approach to choosing a mutual fund. The more risky the investment the fund makes, the higher the potential return is expected, but in most cases it is not high. 3 points.
Reliability also depends heavily on the type of fund. At the time when bond mutual funds are one of the most risk-free investments, investments in venture funds carry very big risks. On average, I would rate reliability in 7 points, because at least you can’t lose most of the deposit, as in other ways of investing.
The minimum unit price starts from 300-500 rubles per share, which is suitable for almost everyone. 10 points.
I think most people invest in open-end mutual funds, so in this paragraph we will only talk about them. You can withdraw money from open funds by selling your shares for 1-3 business days. I will put 10 points.
Still, with this method of investing, you will have to spend a little time managing your investments. Of course, the management company will do management within the fund without your participation, but you will have to transfer money between mutual funds and decide when to sell units and when to buy. 8 points.
Pros and cons of this method of investing:
Pros:
- A large number of assets in which the fund can invest.
- Low entry threshold.
- Relatively low risks.
Minuses:
- The opportunity to get a loss if the fund is not chosen.
- Relatively complicated procedure investing.
- Investor should be interested stock market.
Output. With the successful selection of funds and the proper management of their investments, the profit from the deposit blocks inflation and brings small income. But you need to remember that many funds cause losses to their investors.
3. PAMM accounts.
Brokerage companies in recent years have invested so much money in advertising that only the deaf have not heard about Forex and the tempting prospects of becoming a successful trader. Therefore, it is not difficult for an ordinary person to understand the principle of PAMM investing - to give money to a trader so that he plays on the exchange.
You can find a suitable broker on the Internet. At the moment, the most popular is Alpari. So put 7 points for simplicity and clarity.
Some accounts can bring you more than 100% profit per year, and some can drain all your money. But, using the principle of risk diversification, the income from this type of investment is slightly higher than in mutual funds and is estimated by me at 5 points.
As profitability rises, so do the risks. When using the principle of diversification, you will not lose the entire amount of investments, but you can get a loss. For reliability, I would put 6 points.
You can start investing in PAMM accounts with an amount of $ 10. At the moment, this equals 700 - 800 rubles. The amount is small, so I bet 10 points.
You can withdraw money at any time within one to two business days. Therefore for liquidity 10 points.
Investment management will have to spend time. If you will not use automatic tools, then you will have to go to your personal account almost every day. Indeed, the market situation can change very quickly and your managers can make critical mistakes. I put 6 points.
Pros and cons of this method of investing:
Pros:
- Low entry threshold.
- The ability to independently create an investment portfolio.
- Simple investment procedure.
Minuses:
- It is possible not only to receive a loss, but also to drain the entire deposit amount.
- An investor should be interested in trading in the foreign exchange market.
Output. This is a very common investment method that has gained popularity through advertising. This method of investing money is more suitable for those people who like the foreign exchange market or who have experience trading on the exchange.
4. HYIP projects.
This type of investment is often called quasi-investment. If to speak in simple words, then these are pyramids that accrue profits to participants with new deposits.
Investing in these projects is very simple. Many of them accept bank transfers and payments through the most popular payment systems. Most often, hyipas have a legend that explains to gullible investors where the company takes the money to pay such high interest.
Making a contribution to such a project via the Internet is very easy. But, if you are new to the Internet, it will be more difficult. For convenience, I would put 8 points.
Profit HYIP projects promise just space. On average, long-term highs offer to pay 20-30% per month. Short-term ones can promise to double the deposit amount in just a few days. 10 points for the promised profitability, but in fact it, of course, is lower.
There is no need to talk about any kind of reliability of deposits. A project may collapse at any time. Every day, 1-2 HYIP projects open and the same amount will be spent. Therefore, for reliability, I would put everything 1 point.
I think in this paragraph and paragraphs below we should consider only long-term projects. Minimum amount Entrance to them starts from 1,500 thousand rubles. 9 points for a low entry threshold.
In most projects, a deposit cannot be returned. He will return to the depositor during the entire investment period with each payment. Therefore only 1 point.
If you have already invested in one of the hypes, then you only have to sit and hope that the project will exist and pay. You can’t do anything already. Completely passive investments deserve 10 points.
Pros and cons of this method of investing:
Pros:
- High yield.
- Convenient deposit and withdrawal of money.
Minuses:
- Very high risks.
Output. Make money onHYIP-projects can only be one who is "in the subject." You need to be able to analyze projects and find those that can generate revenue. Most people who earn on highs compensate for the loss in investing by attracting referrals.
5. Backing (investing in poker players).
Almost everyone knows about a game like poker. However, many understand that successful players get a lot of money for winning tournaments. But how many people know that most poker players do not play for their money at major tournaments?
That is, if a strong player does not have enough money to participate in the tournament, he turns to the investor (sponsor), who receives a percentage of the prize if he wins. A player can also have several sponsors who invest in a player and make a profit from winning, depending on the amount of investment.
You can buy a stake from a player only by agreeing on it in specialized forums. For example, on the forum of this site: PokerStrategy.com. To purchase, you will need to personally debit with the player. For convenience, I would put 4 points.
The reliability of this type of investment is highly dependent on the choice of players. In addition, when buying a stake, you do not sign any contracts and the player may not want to give you your share for the win. 3 points for reliability.
You can buy a share from 10 dollars. But only novice players sell cheaply, to buy a share of a professional you will need to invest 200-300 dollars. But it's still better to start with small investments, so I put 10 points for a low entry threshold.
There is no such thing as a withdrawal of money. You pay a share, and if a player gets into prizes, you take profit.
After you have made a contribution, you can only wait for a positive outcome. You can’t influence anything already. 10 points.
Pros and cons of this method of investing:
Pros:
- The opportunity to make big profits when a player wins a tournament.
Minuses:
- More suitable for poker savvy people.
- The transaction is held only by verbal agreement with the player.
- Usually, players earn more than sponsors.
Output. Rather, becking will suit people who are well versed in poker. To an ordinary person it will be difficult to choose the "right" player.
6. Trust management in sports betting.
Most people regard sports betting as a game of chance. But professional privateers earn a lot and consistently on sports betting.
Many privateers create their PAMM accounts, which actively attract investors. This type of investment is similar to PAMM accounts in the foreign exchange market.
In order to make a deposit, you need to register on the BetPamm.com trust management platform and select several accounts for investment. 7 points for simplicity.
If you look at the profitability charts, you will see that leading privateers increase funds in their accounts by thousands of percent. Such income should bribe. But on average, the return on this investment method is much lower and deserves 6 points.
If you use the principle of diversification and invest in several PAMM accounts, then at least you will not lose the entire amount of investment due to marque errors. For reliability, I would put 6 points.
Investing can begin with very small amounts. For a low entry threshold 10 points.
You can withdraw money quickly and easily. 10 points.
After investing, you will need to follow the selected PAMM accounts in order to transfer money between accounts in case of loss or loss of profit. 6 points.
Pros and cons of this method of investing:
Pros:
- Short term investment.
- Self-compilation of a portfolio.
- Low entry threshold and the ability to use a demo account.
Minuses:
- The possibility of loss or discharge of the entire amount.
Output. This method of investment is very much like investing in PAMM accounts in the Forex market. But it is not so famous due to the lack of advertising.
7. Startups (venture capital investments).
In recent years, the stories of successful startups are booming from everywhere. Everyone understands how profitable it would be to buy shares in young companies, which in a few years would turn into large billion-dollar corporations.
The first way to invest in a startup is to conclude an investment agreement with the company directly. Some companies are actively attracting investors on their own, selling them future stocks at low prices. An example of such a startup is SkyWay Unitsky.
You can also invest in a startup using crowdfunding platforms and startup exchanges. The exchanges do not inspire confidence in me, since I consider them to be hypes (read my review of ShareInStock). But many reputable sources call them real companies. By going to the exchange, you will see audited and verified companies in which you can buy shares. You just have to choose a suitable startup and buy a share in it. For simplicity 7 points.
For the purchase of shares on the exchange, the company will pay you dividends in the amount of 2% to 7% per month. In addition, the investor can sell its shares if the company develops and its shares grow in value. He can also sell shares if they lose in price and he realizes that he invested in a dummy company. For profitability 6 points.
You need to understand that startups are a risky form of investing money. According to statistics, 70% of them are unprofitable, and 20% of these 70% are just scammers who appropriate money from investors. But of those companies that are 30% successful, half are breaking up in the near future due to internal problems.
One way to invest in startups is crowdfunding platforms. Unfortunately, in Russia they are not very developed and the minimum amount of investment through them is quite high. But all the companies represented on the site are like a mandatory check. There is also the possibility of investing in startups directly. For reliability 6 points.
The threshold for entering this type of investment is not high. 10 points.
If you decide to withdraw money or redistribute it inside the stock exchange of shares, having sold all or part of the purchased shares, then you will need to sell them on the stock exchange at a price lower than the market price. The lower the price you set, the faster your shares will be bought. 7 points.
For the most profitable investment you have to devote your time. It will be necessary to track changes in the value of shares on the exchange, selling and buying them. There is no manager here, so you have to do everything yourself. 5 points.
Pros and cons of this method of investing:
Pros:
- Convenient and easy investment procedure.
- Very low entry threshold.
- High potential profitability.
Minuses:
- High risks with passive investing.
Output. If you decide to invest in startups, then it is better to use exchanges. You will pay about 5% for withdrawing money, but you will be protected from scammers.
8. Currencies and precious metals.
Surely, among your friends and acquaintances there is a person who smartly claims that money should be stored in gold (platinum, dollar, pound, yen, etc.). This approach says that a person does not understand investing, but simply uses popular “stereotypes”.
For example, if you look at the dynamics of gold prices, you will see that since 2012, it has depreciated by almost a half times against the dollar.
If you decide to do without the services of managers and independently buy precious metals or currency in order to store money in it, then this procedure will not be difficult.
You can buy currency at bank branches, or using the services of brokers (which will be more profitable than buying through a bank). You can also change currencies using online and offline exchange offices or payment systems.
Precious metals can also be bought at banks. And it became possible to purchase gold using the WebMoney payment system.
Also, do not forget about cryptocurrencies, for example, Bitcoin, which, according to all forecasts, will go up in price in the long term. Buying these assets is not difficult, so I put 8 points.
Buying precious metals or currencies for long-term investment primarily protects you from depreciation national currency. For many countries with weak currencies, this is a smart decision. But courses behave unpredictably, so there may not be any profitability. 2 points.
A beginner does not know which direction the course will go in the near future, so its investment is more like a game of chance. Even if now people prefer to keep money in dollars, what is the guarantee that oil will not rise in price in the near future with the ruble?
Probably, you can protect yourself from the depreciation of the national currency by storing half of your money, for example, in dollars and the other half in rubles. So with fluctuating rates, you will not lose anything, but you won’t earn anything.
Profitability depends on luck and I would bet everything 2 points.
The entry threshold depends on the type of asset and on the method of purchase. On the exchange, 1 lot will cost at least 1000 dollars, and through exchange offices or payment systems you can change amounts of several dollars. So everyone can buy currency or precious metals. 10 points.
You can sell currency as fast as you can buy. In exchange offices and exchanges, this is done almost instantly. Gold is also a highly liquid asset. 10 points.
In general, trying to influence profits by tracking rates and then selling assets is already turning you into a trader. And I would not attribute trading to investing. Therefore, investing in currencies and precious metals, I understand how I “invested and forgot”. therefore 10 points.
Pros and cons of this method of investing:
Pros:
- Able to protect against depreciation of the national currency.
Minuses:
Output. Buying precious metals and currency for a beginner is a very unpredictable way to invest. You can reduce risks and increase profitability either by entrusting money to the manager, or by independently studying trading in the foreign exchange market.
9. Securities.
I think that most people from securities are familiar only with stocks. The most financially competent, probably, will be able to name more bonds. Only a few people know how to invest money in securities.
In fact, buying securities is no more difficult than buying a currency. You also need to contact a large bank or a broker. 7 points for simplicity.
When buying securities by a novice, making a profit is a big question. And, if even a newcomer can count on a small income when investing in bonds, the stock market can bring a loss to a novice investor. 3 points for profitability.
In fact, usually low returns entail low risks, but not in this case. In the stock market, the risks are high. 3 points for reliability.
You can start investing with small amount. The entry threshold starts at about 1,000 rubles. 9 points.
Securities can be sold on the stock exchange just as you bought them. This asset is considered quite liquid. I put 10 points.
Again, if a person begins to manage his securities independently, then he is already from an investor turns into a trader. Therefore, here we consider only passive investment. 10 points.
Pros and cons of this method of investing:
Pros:
- A simple investment procedure and a small entry threshold.
Minuses:
- For a beginner, this is a risky and low-profit way of investing money.
Output. If you have already decided to invest in securities, then it is better to contact a professional manager who will manage your funds for a small commission. Independently investing in a stock market is more like a gamble than an investment.
10. Real estate.
There is one stereotype among people: “ The most reliable investment is buying a property". But do not forget that real estate includes not only apartments, but also different buildings, structures, water bodies, forests, etc.
In general, there is some truth in this, because many people want to save up for an excess apartment in old age in order to rent it out and get a good increase in retirement. And in which case you can sell it and get good capital.
You can invest in residential or commercial real estate under construction or already built, suburban or located within the city. The simplicity of investing also depends on the choice of the type of real estate.
To invest in residential real estate, you will need to contact a realtor, look for suitable options, draw up a lot of documents and, possibly, make repairs. As for me, the procedure is still rather dreary.
If you decide to buy commercial real estate, then the hassle becomes much more. You will need to keep accounts, pay taxes, manage facilities, renew energy supply. On average for convenience I would put 2 points.
As for profitability, with residential real estate you can receive no more than 1 percent per month for long-term leases. This is 7-10% per year. The delivery of residential objects by the day turns into work and is not considered.
If you expect to sell it more expensive after a while, then it’s far from the fact that prices will rise. In general, for profitability, I would put 3 points.
Real estate, in fact, has high reliability. Unless, of course, this is not an object under construction.
Even if property prices fall, you will continue to receive stable rental income. For reliability I put 9 points.
The entry threshold is high, even if it is a collective purchase of real estate. The minimum investment amount starts with several hundred thousand rubles. I will put 2 points.
It often happens that in order to sell real estate (especially commercial) faster, you have to set a very low price. Sometimes objects cannot be sold for several months. I put 3 points.
If we consider the long-term rental of residential real estate, then you will not have to spend much time on management. You will need to find tenants once and then once a month to collect money. 8 points.
Pros and cons of this method of investing:
Pros:
- A clear income pattern.
Of course, here we are not talking about investing in starting a business from scratch, but about buying a ready-made company. Starting a business from scratch is hard work with unpredictable results. An investor is interested in a well-established business with streamlined processes that brings a steady income.
In order to find a company to buy, you can use newspapers or message boards. But more often than not, an entrepreneur does not extend about the sale of his brainchild, so as not to cause doubts among employees and customers.
Therefore, they prefer to contact broker companies that will sell their business. They also distribute sales information among friends and acquaintances.
Once you have found a suitable business, you will need to audit it to make sure that the business processes are normal. The whole procedure for a beginner can turn into an insurmountable barrier. 1 point for simplicity and clarity.
Ultra-profitable businesses rarely sell, so rely on average profitability. Of course, profitability is highly dependent on the type of activity and the quality of management. I will put 6 points.
Many people think that entrepreneurs sell only unprofitable businesses. But actually it is not. The reason for the sale may be: urgent need for money, disagreement between owners, loss of interest, lack of time (especially if there are several types of business for one entrepreneur), etc.
An audit will help to analyze the reliability, profitability and prospects of a business. Therefore, the chance of buying a loss-making asset is very small. I put 7 points.
The threshold for entering this type of investment is relatively high. Yes, there are very small companies, but they are far from a penny. Buying a profitable business with streamlined cost processes is similar to buying a property.
Often people come together in groups to buy a business. For example, several friends and acquaintances buy a company together. But in this case, the entry threshold remains high. I will put 2 points.
If you urgently need money, then the company can be sold. If your business is unprofitable, then it will be difficult or almost impossible to sell it. A profitable business is easier to sell, but most often this procedure takes a lot of time. therefore 3 points.
If you begin to independently manage the purchased company, then turn from an investor into a businessman. Therefore, you will need to hire an executive director who will manage your business. But in this case, you will have to control it and analyze the activities of the company.
Yes, and you will need to deal with the selection of manager yourself. therefore 2 points.
Pros and cons of this method of investing:
This way of investing money is similar to investing in a business, but with a simpler purchase and management procedure. Again, you do not need to create and promote a site. You can just buy a finished project.
The site itself is more a tool than an asset. The real asset is the audience that visits this project every day. The site owner makes a profit by showing ads, affiliate programs and other sources of monetization.
You can use the exchange to buy a site. One of the most popular exchanges in Runet is Telderi.ru.In the list of sites for sale you can see all the information on the projects: audience size, profitability, development dynamics, payback period, etc.
The transaction is protected and follows the rules of the auction, where the site goes to the buyer who has offered the highest price. For simplicity, you can put 4 points.
Typically, normal sites are sold at a price equal to the revenue from it for 12 months. That is, if the project brings 20,000 rubles a month, then the fair price for it will be 240,000 rubles.
But in most cases, on such sites, monetization is far from 100%. Thus, after the “twist” of monetization, it will be possible to recoup the contribution in 6-10 months. 7 points for profitability.
If the site was made with high quality and promoted only in “white” ways, then such a contribution can be called reliable. Of course, if you want the project to bring you profit for more than one year, then at least minimal work needs to be done on it. But, for a year or two projects will be enough without additional investments. 8 points for reliability.
In general, some sites are sold very cheaply. Can be found for 500 rubles. But such sites should not interest the investor.
{!LANG-0813c05c24d6caad82832e0c84facfea!} 6 points.
{!LANG-4d97560f5b9f239130f565194b3d5874!} 4 points.
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Pros and cons of this method of investing:
Pros:
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Minuses:
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Output. {!LANG-4bd2353f6f937bcbc78253d4fbf71936!}
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