We often look at investments and its attractiveness based on how fast and how high. How fast is in terms of duration and how high is usually calculated in absolute number of percentage of returns. Property investment should be one of the SLOWEST but may just be one of the HIGHEST based on return on investment calculation. I meant property investment without any hanky-panky kind of procedures under which the buyer takes unnecessary risks for exceptionally fast and high returns.
Stock Investments? Some would say stock investments would be one of the fastest. Buy today, price is up in a couple of minutes, sell it and get the profits within days. Have we however understood that when we buy into a stock, we are buying into a company. There’s no way that the company could earn us profits within minutes. Assuming we buy into a property developer for example. It has to buy land, build homes and after it has sold all the homes and deducted all the costs, will report it in their annual report. Perhaps it will declare dividends if it earned profits. That’s what we are buying. The stock price up and down are merely expectations and we happened to gain from it. Business part stays the same!
Property Investment? Another friend asked me about property investment. His question, “How fast could I earn profits if I start my property investment today?” The reason he asked was because there are so many “trainings and workshops” about investment which promises quick returns. I informed him that I have no such special tips on quick returns. However, he is free to visit some of these previews and subsequently to pay and learn how to make properties earn him quick profits.
Property Bubble. Ladies and gentlemen, property bubble bursts due to SPECULATIVE buys. One very real example is the sub-prime crisis of 2008 which started from the biggest economy in the world. One word to describe what has happened is GREED. Buyers and sellers who were greedy and eyeing ever higher prices, bankers who facilitated the deals and even the regulators who acted too slowly to curb what was happening. There’s a huge difference between researching and finding an undervalued property versus buying by using some methods or processes and getting money in return. For a working professional, it’s best to buy a good property and keep saving for the next one. I am very sure one could have a few properties by the time one retires. Slowly but surely…
So, how fast could I earn back my money? If you are a kopiandproperty.com reader, it will take you some time. Haha. However, based on my property investment experience thus far, it’s a positive journey. Choice is yours yeah. Happy investing instead of ‘gambling.’
<Featured Image is courtesy of Stock Photos from Tolikoff Photography>
written on 10 April 2019
Next suggested article: No such thing as sure profit just because it’s property yeah.