There is money to be made in the investment game — but there is some to be lost too, if you are too uninitiated for the kind of investment vehicles you prefer. The truth is it is a risky business, and unless you are willing to accept the risks, this is probably not the game you should be playing.
For those who are experienced, or those who are at least keen on learning how to do it, know this: it takes money. The good news is, if you invest in good options you could make a lot more money than you initially put in. To do that, you need to be careful.
Here are two good investments and a couple of pretty high-risk ones you should avoid:
Residential properties. Your house is probably one of the best investments you will ever make. Most houses, especially those in prime locations, gain value through time. If you are in the market for a house, choose one that promises to maintain or gain value over time. If you want to apply some changes and improvements on a house you intend to sell in the future, talk to your realtor before making a move.
Rental properties. Next to your house, perhaps one of the best investments is a house you can rent out, a small hotel in a good tourist location, or an apartment. Even student accommodation investment in the UK is a good option, says Harley Investments Ltd. You earn while you own them, and then you gain more when you get tired of them and sell them.
Precious stones. Whatever you may have heard, investing in diamonds and other precious stones is not what it is cut out to be. You could lose money if you think investing in a diamond ring is a right move. Investing in diamonds is for the very rich who have the heart for this kind of high-stakes game.
Collectibles. Just because you know someone who made lots of money selling a work of art they bought for about a fraction of the selling price does not mean it is a safe idea to invest in collectibles like art and stamps and rare books. This is a hit and miss game that is reserved for those who understand what they are collecting and invest time and money to learn more about them.
Whatever you do not understand, or which has a very steep learning curve before you truly understand anything about, is probably not the investment vehicle for you. Stay away from those things. If you must take risks, do it with things you do have experience with.
When you invest, you are essentially gambling, so be willing to pay the price if you lose. Nobody likes losing, especially not their hard-earned money, so invest in what you know and what is less likely to fail.