Investing money to make money used to be the key principal for most investors, as technology evolves us into a digital world, time is the new commodity investors are seeking, which is priceless! Typically investors want the best return in the shortest amount of time, safe havens like property traditionally earn a great yield over the long term of up to 6-8% per annum, whereas the modern day trader prefers a short term hold making up to 6-8% per month. So with all this technology making your ROI quicker, which type of investing is worthwhile?
Investing for Money – Properties are a form of tangible residual income, you have complete control but with price fluctuations and the economic fundamental of supply and demand, prices can affect your investment but have remained steady for years, there is a secondary market to sell but it’s not an overnight process to liquidate if you need your money instantly compared to money in stocks. If your buying and selling houses or renting to tenants this can be a good long term income, as there is always demand for buying and renting.
However to get on the property ladder you need a large deposit to get started, which if not inherited needs to be saved over the years or applying for a loan. This can take a considerable amount of time. Looking at the past decade performance of property, mortgage affordability improved significantly and the number of first time buyers reaches a ten year high.
Since the 1980’s:
Investing for Time – Trading daily, betting on fluctuating currencies or any other commodity like gold or oil can save time and make tons of profit, but has mountains of risk associated with it. You also need the knowledge and skills to be profitable against the market, you may lose all of your money and have nothing to show for it but a lesson learnt. Studies around the world has shown only 20% of investors make money when investing on stocks or any other market related investment. It’s why people hire professionals to do this.
How have shares done compared to house prices?
The FTSE 100 was introduced in 1984 at a base level of 1,000.
We really have to position ourselves in line with our own circumstances, Thames Rock View offer a selection of investments to suit investor’s needs, short or long term and can work with a budget from as little as £20,000. Sign up to get a free one to one consultation.