Investing: how to invest money in 2021 and not lose it

Where can one invest money in 2021 and not lose it all? This is clearly a question that is asked by people who are used to thinking about tomorrow. What’s more, nowadays, almost everyone is looking for a way to earn a passive income regularly. So in this article, we’ll be talking about the latest available real estate investment options and look at how to save, while increasing your also available funds.

How to prepare for an investment

First, you need to prepare an amount of money that you can live on for 2-3 months if you suddenly become unemployed.

Often, this requires about 15% of one’s available income.

What’s more, one also needs to consider whether or not one will be able to take on such a risk, both personally and financially. Also, what’s important for every investor (and person) to remember is that usually, the more risk one takes, the higher the return will be. So simply put, high risk, high reward.

If you don’t want to go this route and analyze this situation, it’s better to choose a safer, but less profitable way of investing.

One of the basic rules for any investor to remember is not to put all one’s eggs in one basket. That is to say, it is better to divide one’s available funds into two or three separate real estate investment options. This way, one will have a more comprehensive investment plan, instead of trying to only learn one way of making more money, thereby failing and losing everything.

So if you invest your money in various ways, then if you do lose, you don’t lose everything and you’re more likely to gain it back from one of your other investment options.

What to invest in

If you have a small amount of money (no more than 100 thousand rubles), you can make a deposit to the bank and receive interest on it. What’s more, the benefits of such an investment also include:

  • A bank deposit can cover losses related to inflation, which occurs almost every year.
  • If you’ve made a contribution to a financial institution with a good reputation, you can be sure that the investment will result in a passive return.

However, there is one drawback when depositing via the bank and that is that small annual interest will not give you a high profit.

Income from real estate

Homeowners have the opportunity to rent out their properties for either a short-term period or a long-term period. What’s more, it doesn’t matter where your home is located, whether it’s(in Russia or another country. Because in most countries all over the world, even people who don’t have local citizenship have the right to receive income from renting real estate.

For example, in the United Arab Emirates, Russians who have purchased an apartment or a villa, can find and settle residents after simply completing the necessary documentation.

What’s even greater than this is if you rent an apartment abroad, you will have additional funds due to the currency conversion.

Expert tips on where to invest money in 2021

If you just keep money under the mattress, you will end up running a loss because every year there is inflation all over the world.

What’s more, according to experts, the best option for earning a passive income is investing in real estate and then reselling it or renting it out.

An example of this can be seen in a scenario where the owners of several small apartments, where the tenants live and who may not be working at all, as their profits from earning a passive income allow them to do so.

How to invest profitably abroad

Investments abroad for individuals are almost no different from investments in one’s own home country. You can make a deposit to a bank both at home and abroad, as well as, purchase accommodation and find tenants.

In addition, you can also purchase shares from an establishment, as there are no explicit rules and regulations forbidding one from doing so. Sometimes a company whose shares you have purchased may be uncompetitive, and if a stronger and powerful company suddenly appears on the market, it may simply fail.

A profitable investment abroad for legal entities is investing in construction. In other words, your company invests in reconstruction projects, repairs, construction of buildings, and other types of infrastructure facilities.

In this case, one’s profitability is at 7-10% per annum.

Although, it should be noted that this is more suitable for those types of businesses that already have quite large sums of money. Furthermore, one should be aware noted that businesses deciding to invest in development often end up taking risks due to natural, as well as, political factors.

Real estate abroad

Good money can lead you to securing yourself decent accommodation, property, and even a business premises (office space, restaurants, clubs, cafés, bars, warehouses, etc.). Of course, only a person who already has good cash reserves can purchase real estate. However, experienced investors know that such a purchase guarantees you:
  • A regular and high profit.
  • Payback over a short time period of time.
  • The ability to resell property for a profit when the cost increases.
Many Russians who purchase apartments in the United Arab Emirates choose to settle themselves, as well as, their fellow citizens here because they share a common mentality with this country that’s familiar to them. Experts also report that it is more profitable to purchase primary accommodation at a lesser amount for resale or rental later on. There are several reasons for this some of which include:
  • In the case of purchasing a new property, the investor can be sure that the property does not have any issues or surprises. Such as, for example, debts of the former owner.
  • Additionally, one won’t problems such as a leak in the sewer or a poor state of communications in the primary real estate sector.
  • Among other things, the registration of a primary accommodation is easier than that of a secondary one. Because in this case, one deals directly with a construction company and not with a private owner.
  • Also, if you’re going to purchase a property but you don’t have the necessary amount of money available yet, in this case, you can take the time to study the advertised apartments and cottages. This way, you willhave a good understanding of the available offers and prices, as well as, the area where you are looking for
  • Finally, if you’re afraid of getting tied up into knots over the details, you can be sure to entrust the search, necessary documents, registration of the necessary papers, negotiations with sellers, checking that the property is in line with and meets the latest considerations, rules, and regulations as well as, preparing documentation for the bank experts, if necessary to us. What’s more, in the United Arab Emirates, you can be sure that the signing of the contract for the buyer and seller is completely safe with realtors who are responsible for the outcome of the transaction.

We will assist you in selling, purchasing or renting real estate in the United Arab Emirates

For many years, the employees of our company, “Ax Capital” have been assisting our customers in the purchasing, selling, and renting of real estate in the UAE. What’s more, our consultants won’t only select the property that meets your requirements, but they’ll help you do it legally. From negotiating with sellers, preparing the necessary documentation, to the drawing up of the contracts, no part of the job is too little or too much. More importantly, we are there to support you through the whole process and will remain with you every step of the way.