Investing: How to Invest in 2021 and Avoid Losing Savings

Investing: How to Invest in 2021 and Avoid Losing Savings

10.20.2021 (updated 11.30.2022)

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  • Investing: How to Invest in 2021 and Avoid Losing Savings

“Where can one invest personal savings to avoid loss?” This question is often asked by people who consider the future. Nowadays, many people are looking for a way to generate regular passive income. In this article, we will discuss the best ways to invest, and how to not only save but also multiply existing funds.


How to Invest to Generate Passive Income

To begin, ask yourself the question, “what kind of risk-taker am I, from a financial point of view?” Usually, an investor’s income might increase as his level of risk grows. A less lucrative but safer investment strategy is recommended if you don’t want to undertake any analysis.

One of the fundamental rules of investing is that it is better to divide the available capital among two or three different investments rather than try to earn from only one practical source of income. If you utilise a variety of investment options, even if you lose money in one, you will almost certainly make it up in another.

Where to Invest

If you only have a small amount, to begin with, you can deposit it at the bank and receive interest. These are the advantages of this type of investment:

  • A bank deposit can cover losses connected to inflation, which occurs almost every year.
  • If you have invested in a financial institution with a good reputation, you can be sure that the investment will generate passive income.

Disadvantages of bank deposits:

  • A low annual interest rate does not guarantee high profits.

Income Stream from Property

Homeowners have the option to rent out their properties for short or long periods. At the same time, it doesn’t matter where your house is located (in another country), because, in most countries of the world, even people who do not have local citizenship are allowed to receive income from renting real estate.

For example, in the United Arab Emirates, foreigners who have bought an apartment or a villa can find tenants and allow them to take occupancy right after the registration of the necessary documentation.

If you rent an apartment abroad, you will receive additional profit as a result of the currency conversion.

Expert Advice: Where to Invest in 2023

If you simply store money, it may be lost due to inflation, which happens every year all around the world. Therefore, you need to decide where to invest.

According to experts, the best way to invest is to invest in real estate and then resell or lease it. The owners of several small rented-out apartments may not work at all, as their income allows them this.

How to Make Profitable Real Estate Investments Abroad

Individuals’ overseas investments are hardly any different from investments in their own country. That is, you can buy a house and find tenants both at home and abroad, as well as make deposits at a bank.

In addition, it is possible to buy shares of a company, but this option does not guarantee a permanent income. Sometimes, if a stronger firm enters the market, the company whose shares you have purchased might just close down since it isn’t competitive.

Investments in construction are profitable overseas options for legal entities. In other words, your company invests in projects for the reconstruction, renovation, and construction of buildings and other infrastructure facilities.

In this case, the yield is 7-10% a year.

However, this is only suitable for companies that have fairly large amounts of money. Remember that organisations that choose to invest in development frequently take risks for both natural and political reasons.

Properties Abroad

What are worthwhile investments abroad? Properties, land plots, and business premises (office space, restaurants, clubs, cafes, bars, warehouses, etc.) bring a good income.

Of course, only a person with a lot of money can buy a unit, but experienced investors know the guarantees that this purchase provides include:

  • regular high profit;
  • payback within a short period;
  • possibility to profitably resell the unit at an increased price.

Experts claim that buying primary residences for resale or rental income is more lucrative than buying secondary residences.

This is due to several reasons, such as:

  1. In the case of buying a new home, the investor can be sure that the real estate has no encumbrances or debts from the previous owner.
  2. The new apartment does not have flaws such as, for example, problems with sewerage, a poor state of communications, and so on.
  3. Among other things, it is easier to design a new home than a secondary residence, because in this case, you deal with a construction company, and not with a private owner.

If you are in the planning stages of a purchase but do not have the funds, you can take the time to research the real estate market to help you better understand the offers and available prices as well as the communities in the area you are looking for a home.

If you are afraid of becoming confused by legal nuances, rely on specialists for house-hunting, gathering a set of documents, completing the necessary paperwork, negotiating with sellers, checking a selected unit according to numerous parameters, as well as preparing the documentation required for the bank. You can be certain that the signing of the contract for the buyer and seller will be safe if you work with realtors in the United Arab Emirates who are responsible for the transaction’s result.

Dubai Real Estate Investment

Dubai is one of the top investment locations in the world, and real estate there is regarded as a safe and extremely lucrative asset. There are two main methods for purchasing real estate in Dubai:

  • The purchase of a house at the initial stage of construction with a subsequent resale by the time the building is commissioned. This type of investment can bring up to 20% profit since off-plan units are sold at a substantial discount set by the developer, and by the date of commissioning their prices grow significantly.
  • The purchase of real estate with subsequent rent for a short or long period. Dubai has a high return on investment (ROI), the most profitable properties can bring more than 10% a year.

In the emirate, housing prices are growing steadily. As a result, this type of investment will not only protect your capital but will also multiply it. This method of investing is incredibly successful.

Assistance with Selling, Renting or Acquiring Real Estate in the United Arab Emirates

The AX CAPITAL specialists have been helping buyers acquire and sell real estate in Dubai for many years. The agency’s representatives will advise you on the best areas to invest in the UAE, assist you in choosing a property that fully meets your needs, negotiate with sellers, prepare a set of documents, draw up an agreement, and guide you through every stage of the transaction. Invest wisely by purchasing a home in Dubai through AX CAPITAL!

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