Finding new ways to invest can be tricky nowadays. With access to more options, most people can find it confusing to choose the best option.
Choosing between investments, property, stock or fixed interest can be tricky. Here are the advantages that come with each option:
Investing in property:
By investing in property, you are in more control. Consider that when you invest in a public or private company, you are a minority investor who puts his or her faith in management. By investing in real estate, you also get a tangible asset to own. Unlike stocks, investing in property is easier to analyse and quantify. There is also less visible utility.
Investing in stocks:
Investing in stocks gives you a higher rate of return. This option is also much more liquid. Unlike investing in property, your cash is easily accessible. If you don’t like a stock or need immediate cash, you can easily sell your stock holdings. There are lower transaction costs involved in investing in stocks too. Managing stocks is less work, unlike a property, where you have to maintain the property and make sure that rates are paid every month.
Stocks give investors more variety. You can invest in different countries and you can also invest in various sectors.
An investor can purchase a stock, bond, commodity, real estate or another investment vehicle with the expectation of earning a positive financial return over time.
An investor can anticipate making a profit due to advanced research and prudent selection of an appropriate investment vehicle.
Fixed Interest investment:
Fixed interest investments offer investors a regular income for a specified term with the expectation that the principal will be repaid ate the end of the term (maturity date.)
This type of investment should form part of a diversified investment portfolio.
It’s important to do your research before choosing between investments, property, stock or fixed interest.