Investment Opportunities In South Africa – it is of utmost importance to protect your wealth, whether you have a stable job or business.
There are many factors that contribute to the need for everyone to grow their money in their own preferred baskets.
The overall goal is to ensure that as an individual, you don’t just focus on one income revenue stream and just investment accounts.
Why is it important to invest?
Investing can generate more alternative source of income for you, rescue you from a financial jam and fund your retirement phase.
Great investment opportunities in South Africa will grow your wealth, this will help you meet all your financial goals and of course increase your purchasing power over time.
Investment journey can simply begin when you have made a lump sum of money, it could be from selling you old car or after selling your house.
As much as we would like to believe and expect that invest will build wealth, ensure that in any investment strategy you choose, there must a balance on potential return and obviously the risks that are involved.
Let us take year 2020 in markets as a perfect example to potential risks, this year was the worst one in a long time to have so much declines within 12 months.
At the same time, the huge spike was followed by great highs of all time looking at how badly the economy was challenged all over the world.
When it comes to great investment opportunities in South Africa, despite of any economic climate, there are many options to invest.
There are safe options that you can find such as money market accounts, to more high capital required options such as bonds in corporate or even higher risk options such as stock index funds.
The good and exciting news about this is that you can always find investments that will provide you with variety of great returns and risk profile that fits you best.
Very Important
Before you consider any option of where you want to put your money, risk tolerance is one of the important key roles before you decide to inject your money anywhere.
First you need to assess your own net worth and how much you can afford, don’t choose an investment portfolio according to your peers and what you see other people doing.
You need to keep in mind that some people, like those who are retired, they are comfortable to invest their funds in high risk investments options.
For example, if you do labor work and can earn up to less than 100 000 annually, you cannot afford to place your money in investment options like Bitcoin, markets or forex trading.
This are type of options which you can potentially lose all of your money and therefore you need to ensure that you use money that you can spare around or play with.
Many people are skeptical of doing any investments simply because its either they had a bad experience in it or they saw or have seen someone they know lose all their money in this portfolios.
Lack of personal assessment is always the key contributing factor, not knowing where you belong before choosing any investment opportunities in South Africa.
Let us look at this opportunities, perhaps you have just retired, you have everything that you need, you have driven all your dream cars and own a beautiful house of your dreams.
At the moment you are setting with a lump sum of money that needs to be grown by means of looking for great investment portfolios that are safe with less risk.
Bitcoin
Bitcoin has become most popular recently and there are multiple ways to invest in it, this includes but not limited to bitcoin trusts and ETFs comprised of bitcoin-related companies.
Why invest in Bitcoin?
Same as traditional well known financial infrastructures, with Bitcoin, the investors have significantly more control over their financial information and personal data.
Using this investment portfolio puts you in fewer risks of identity theft than users of fiat currencies and other digital forms of payments like credit also do.
One of the best advantages and one of the things to look up to is that Bitcoin has been setting new records for its network in a very has rate.
This investment platform has a very resilient risk attack of 51%, this is ensuring that shared truth of the block chain ledger is upheld and very high.
Return on investment – Bitcoin matrix is rising hash rate attests to the widespread acknowledgement of the profitability potential of Bitcoin mining, as well as investing in Bitcoin itself.
This portfolio is not just a Cryptocurrency, but has become a recognized great investment opportunities in South Africa.
As a unique store of value, Bitcoin price increases have in many cases led to constant returns on investment for many people who have been doing it for quiet sometime.
Property Investment
As you pay down a property mortgage, you build equity—an asset that's part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more.
There are many people who are still scared to move out of their comfort zones and start purchasing their own properties.
More especially in South Africa, young professionals enjoy spending their salaries in fancy expensive complex properties with nice garden and tight security.
“But here is what you are missing out on”
Did you know that, as you keep paying your bond repayments, it becomes an asset which is part of your net worth?
That means that you are building equity and this alone gives you more leverage to buy more properties and increase your wealth and alternative income revenue streams.
How can property investment increase your income revenue streams?
Property has become one of the biggest and popular investment opportunities in South Africa, people buy property to rent it out.
In most cases, except for the fact that mortgage is paid by the rental money, many property buyers will renovate the property to accommodate many different tenants.
If you have many tenants in your property, this means that the property can yield commission except for the fact that this asset is paying its bond also.
Property investment has a low and in most cases negative correlation with other major asset classes.
Stock Markets
What are stock markets and can we say this are reliable for investment?
Stock investment is one of the most risky options which can draw attention to the huge gains and losses of some investors.
While this is a very tricky option, all that you need to do is manage the risks involved and start making money from stock markets.
In conclusion to investment opportunities in South Africa, assess all the risks involved with each option before putting in all your savings in any type of this outlined options.