Ten thousand dollars can be called pretty serious capital. For this money, you can buy a pretty new car. Or any other expensive property. But it s pretty foolish to spend that amount of money on a major purchase.
After all, it can be profitably invested and in the future constantly receive income from your investment. A new source of income will improve the quality of your own life. Also, the need to go to work in the future may disappear.
Although it sounds like a fantasy, such a result may well become a reality thanks to a successful investment. So where is the best place to invest $ 10,000? More on that below!
The content of the article:
- Residential and commercial properties
- Own business
- Gold and other metals
Residential and commercial properties
Of course, you should start with real estate objects. Since this type of investment is very popular among residents of the post-Soviet space. And this approach can be called quite justified! After all, money invested in real estate is reliably protected from the effects of inflation.
The value of the real estate itself, albeit rather slowly, but steadily creeps up. The main cherry on the cake is the fact that real estate generates a very impressive rental income.
Income can be from 5 to 30 percent per annum of the cost of the object. It all depends on what form of delivery the owner chooses. It s no secret that short-term leasing of residential real estate is much more profitable than long-term lease.
Do not forget about commercial real estate here either. You may be in business yourself. In this case, you can use part of the available space for your own needs, and rent the other part to interested parties.
Be that as it may, and the amount equivalent to $ 10,000 is quite enough to purchase one or even several real estate objects. Of course, everything here depends on the locality, as well as the area of the property. But the fact remains. Real estate is one of the most serious investment objects.
Since in the previous paragraph we remembered our own business, then here we will talk about it. Perhaps no other investment will give you as much leverage as investing in your own business. Since it is here that everything will depend only on you and your skills.
It is your own knowledge and skills should be the starting point when choosing a specific case. In no case should you invest in an industry that you don t understand.
In addition, you should not delegate extensive powers to others at the initial stages of doing business. At the very least, a businessman must maintain complete control over his own business. Otherwise, the invested capital can very quickly evaporate in an unknown direction, and the investor will simply become bankrupt.
A bank deposit will be a good choice for conservative investors. Why is that? Because $ 10,000 can be stacked with great effect. At the same time, a bank deposit allows the investor not to participate in the case. This means that you can completely immerse yourself in other areas of activity.
In this case, the accrued interest will regularly come to the card or be added to the principal amount of the deposit. As we said above, the main disadvantage here is low profitability.
At the same time, interest accrued according to the terms of the deposit in the national currency is most often offset by the impact of inflation. In this case, the purchasing power of capital does not change.
So what is more profitable make deposits in foreign currency. Although the interest rate on such deposits is at the minimum level, it is quite consistent with the real one.
And the purchasing power of capital in the case of the dollar or euro will increase even simply due to the growth of the exchange rate of this currency in relation to the monetary unit of your state.
Gold and other metals
Precious metals are also the choice of cautious and low-key investors. Gold almost never loses in value. But in this case it is also not necessary to count on excess profit. The easiest way to acquire gold and other precious metals is to buy new precious items.
But in this case, you will have to overpay significantly. Indeed, the cost of a product includes not only the cost of the material, but also the cost of work. So buying precious metals from jewelry stores should not be considered.
Many people buy gold items from ordinary pawnshops. It just so happened that the average person trusts only those things that are in his hands.
But various government and financial institutions do not inspire such confidence. If you belong to this category of people, then it is quite possible to consider purchasing precious metals in the secondary market as an actual option. You just have to acquire special knowledge that will help you distinguish a fake from a real precious metal.
Next, you should turn your attention to bank bars. The same gold can be purchased in bars of different weight. Yes, and investment coins can be attributed here as well.
The disadvantage of such an investment is that you will overpay a lot when purchasing a bar. After all, just like in the case of currencies, there is a buy and sell rate here. So the purchased gold should not be sold 2-3 months after the purchase.
Another disadvantage is the fact that physical damage significantly affects the value of the ingot. And in the future, a banking institution, when buying your gold, can accept it at a price below the market price.
The last method of acquiring precious metals is a metal bank account. At the same time, you will not get your hands on gold physically. At the same time, a metal account will be opened for you. In fact, it does not differ from an ordinary account in monetary units.
But the cost of your electronic gold will be equivalent to real gold. This means that in the future you will be able to sell gold from a metal account with a significant profit.
In addition, some banking institutions offer to open a metal savings account. In this case, capital gains occur not only due to the increase in the value of the asset, but also due to the interest rate. It is quite possible to invest $ 10,000 in precious metals!
The best thing to do some diversification and invest your money in various instruments that will be independent from each other. In this case, it will certainly be possible to avoid a complete loss of financial resources.
And even with this approach to investment, it is much easier to choose the most effective object and instrument. In the future, you can invest all your capital in it!