Investing money
Now for the hard part. Where can you invest this money The money that you invest today should, over time, become your wealth of tomorrow. Investing money in Property,investing money in Shares, investing money in Managed Fundss or Superannuating is the smartest decision that you can make.
Investing in property
Let us review the advantages and disadvantages of investing money in properties.
Investing Money Tips Income: If you invest in a property you don't have to wait until you sell it in order to enjoy a financial advantage. You are charging rent, which is income.
Frequency: You can obtain income from your property on a weekly basis, whereas with shares you are paid dividends only once or twice a year.
Control: A property is under a greater degree of your control than a share portfolio. Whenever you want to renovate or upgrade your investment property, you can. In other words, you can add value.
Security: They are good property investments and not so good ones too. But whether the property market is hot or cold, property can be used as security for loans. It can be sold and, of course, it can be lived in.
Disadvantages Uncertainty: With a property you become a landlord and in the rental market there are no guarantees of having good tenants. You are also susceptible to zoning changes, major developments nearby and other matters beyond your control, which can affect the value of your property.
Expenses:
In rental premises, things will break. And as landlord, you will have to pay for new water heaters, fans and carpets. You'll also be liable for insurance, rates, water and strata fees (if you own in an apartment block). And to buy the place you'll have stamp duty and convincing costs. You have none of these expenses with shares.
Investing money in Shares or investing money in stocks The share market is the general term for the market in which companies issue shares to raise money (known as capital), and those shares are then traded among investors.In our country, you can invest in the NSE (National Stock Exchange) or the BSE (Bombay Stock Exchange).
Let us discuss the advantages and disadvantages of shares.
Advantages Investing money directly in shares has some advantages compared to indirect investment, such as in managed funds, including:
No fees to hold a share Investment in shares can offer high liquidity - shares are generally easy to trade as there is usually someone wishing to trade a share in a particular company at any point
in time You have control of the share that you Investing money in
You can diversify by investing in a wide variety of companies from many different industry sectors
Disadvantages
Investing money directly in shares has some disadvantages compared to indirect investment, such as in managed funds including: Brokerage fees are paid every time you trade shares You need to research and decide on the shares you are going to purchase yourself (in a managed fund a professional fund manager does it for you) For diversification you need to buy a number of different companies.
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