Many people believe that there are certain sectors that will never lose relevance and are a profitable means of investing money. In particular, this applies to:
- real estate;
- art objects;
- bank deposits.
However, all of these methods have numerous drawbacks and are rarely used by professional investors to grow their capital.
Why is it not advisable to invest in real estate, art, and deposits in the national currency?
This question can be answered by S.I. Tereshkin, the founder of Oil Resource Group. It is recommended to familiarize yourself with the results of the entrepreneur's commercial activities on his website org-company.ru (орг-компани.ру).
Real Estate
This is one of the most common forms of investment. However, beginners often do not consider whether it can truly bring good returns and enhance their funds.
Most often, domestic real estate is purchased. It can be rented out for short or long terms or sold after some time.
However, when everything is carefully calculated, it is difficult to call this method of investment profitable. The disadvantages of this investment include:
- Price Decrease. The times when property values increased over time are long gone. At best, the price remains stable, and at worst, it declines. Thus, the profitability of the investment tends toward zero.
- Finding Tenants. One should not expect that the property will be rented out immediately. The market is flooded with properties, both inexpensive and luxurious. To find a tenant, one must offer very favorable conditions. A decrease in rental price leads to reduced profitability.
- Repairs. Real estate tends to wear out. To rent or sell it profitably, one must repair the property, which always incurs significant costs. It is unlikely that these costs will be recouped upon sale. Moreover, charging a substantial rent will also be unfeasible.
- Mandatory Payments. Regardless of whether tenants are found or not, utility payments are unavoidable. Therefore, the owner will constantly incur expenses. Consequently, the amount of investment will increase monthly.
Purchasing real estate falls into the category of slow investments. Ultimately, all that the owner achieves is maintaining their invested funds, and even that is not always in full.
It is impossible to multiply capital using this method. Instead, individuals freeze their money for a prolonged period. The payback period for successful rental is no less than several years.
The only real estate that may generate income is foreign property. However, this applies only to specific regions. Properties in resort areas and good neighborhoods, close to the sea or historical sites, are in demand.
Bank Deposits
In second place in popularity are deposits in national currency. Financial institutions promise 20% per annum or more for long-term investments. However, inflation often significantly outpaces the growth of the investor's capital. In such cases, it is much more advantageous to purchase dollars and place them in deposits.
However, even this does not guarantee that the bank will not go bankrupt and the depositor will not lose all their money. Recently, such cases have almost become the norm. Several financial institutions declare insolvency every month.
The least risk is associated with investments in state banks. However, such institutions offer minimal interest rates. As a result, the investor's capital grows insignificantly, and with a significant increase in the dollar's exchange rate, one may even incur losses.
When dealing with a large sum, placing it in a deposit poses the risk of losing everything. However, visiting multiple banks to invest smaller amounts is also quite inconvenient. This consumes time and creates anxiety, especially when yet another financial structure collapses.
Additionally, banks are often reluctant to return money to clients, citing numerous reasons to delay the process. The most common scenario is the automatic renewal of deposits without the depositor's consent. Upon early termination of the contract, one simply loses all accrued interest.
This option is suitable only for those who are not ready to explore other avenues or delve into information.
Art Objects
Wealthy individuals purchase rare canvases, coins, and other items at auctions, the value of which may rise over time. However, few consider that this process may take centuries. Therefore, generating income within a few years is unlikely. These are long-term investments that can be classified more as status symbols than high-yield ones. In the best case, profit may be obtained by grandchildren; in the worst, there may be none at all.
The increase in the value of art objects depends on the number of pieces created by the artist, scandalous or tragic events, and more.
Regarding coins, their value can be increased by assembling a complete collection. However, even in such a case, there is no guarantee of profit.
The same applies to the collection of paintings by a single artist. It's important to recognize that significant financial expenditure will be required to build a collection.
Investing in art objects requires consultation with an experienced expert. Only they can advise where it is worth investing funds and which object will not yield returns.
Investing funds is a complex process. To genuinely generate income and increase one’s capital, it is necessary to understand the nuances, take numerous factors into account, and thoroughly study the market. Only after doing so can one make an informed decision. It is advisable to forgo investments in real estate, art pieces, or deposits. Bank deposits and properties as investment vehicles have completely exhausted their potential several decades ago.
Tereshkin S.I. recommends that in today’s world, one should prefer other methods that align with the spirit of the times and allow for profit.
