There are a variety of ways to invest money and to prevent savings from depreciating due to inflation, it’s crucial to make them work. If you have a substantial amount on hand, buying property is the safest and most profitable option. The owner receives a profitable asset that tends to grow in value over the years. Real estate provides stable rental income. If you are thinking of how best to invest money, overseas property, particularly in relatively new destinations like Vietnam, might be the answer. This Southeast Asian nation, among the larger ones, has recently made housing more accessible to foreign nationals. Let’s look at the advantages of property in Vietnam and delve into other investment options.
Content:
- Preparing for profitable investments
- How to invest money for passive income
- Where to invest money if you have a large amount available
- Expert advice: where to invest money in 2024
- How to invest abroad profitably
- Property investments in Vietnam
Preparing for profitable investments
It’s crucial to start by assessing your assets. Investments require available funds, but their expenditure should not compromise your quality of life, limit access to paid medical care and education or affect other important parts of your life. There are several basic steps to understanding how and what to invest in successfully:
- First, you need to build a financial cushion to help you survive several months if any force majeure circumstances arise or you lose your main source of income.
- Then you need to calculate the portion of your regular income that can be set aside monthly.
- Finally, you need to decide on your strategy for investing: where to invest money. You should make the decision based on the available amount.
It is important to note that dealing with stocks, mutual funds and other high-profit projects can be challenging without the relevant experience. The risks are too high. Therefore, it makes more sense to consider safer potential sources of income.
How to invest money for passive income
Where is the most profitable place to invest money? There is no clear answer to this question. If you have sufficient free income, experts recommend not dwelling on one option. It’s preferable to have different types of assets. For example, allocate part of the funds into bank deposits and another part to real estate. And then, if the key rate is reduced, the investor will avoid a sharp reduction in their income. Let’s look at the best ways to invest today.
Mutual funds
Mutual funds function similarly to banks but offer higher returns by dealing with stocks and securities. In this case, assets are managed by a professional broker, which reduces the risks. However, if bank deposits guarantee income at the agreed-upon interest rate specified in the agreement, it’s somewhat different for mutual funds. It’s impossible to predict fluctuations in the market. It’s difficult to ensure a specific profit amount, as it’s directly linked to your manager’s professionalism and the overall global economy
Buying currencies or precious metals
This is another option for where to invest. However, the situation here is roughly the same as with mutual funds. Even after carefully studying the dynamics of the exchange rate, you are unlikely to make a significant profit on fluctuations in popular currencies—unless it involves a very substantial amount. If one is available, real estate investments are more attractive and stable.
Bank deposit
For middle-income individuals, this is often the only option for how to invest money. Deposits are insured by the state, guaranteeing the safety of your funds. However, even with a fairly high-interest rate, substantial profits are achievable only with a large sum. To a greater extent, a bank deposit allows you to hedge your bets against inflation and protect yourself from possible criminal activities when storing cash at home.
Property investments
Traditionally, this involves purchasing a residential or commercial unit and then selling it for a profit. Alternatively, you can own property to rent it out and receive money or a fixed income. However, there are several other, much simpler, ways to make a profit.
Real estate investment trusts are a common option. These are companies that own income-generating properties, such as shopping malls, hotels, offices, etc. and offer regular dividend payments. Additionally, crowdfunding platforms, which often pool investors’ funds to finance real estate projects, have gained popularity in recent years.
Where to invest money if you have a large amount available
For those with significant available funds, substantial profits can be expected. Both high-interest bank deposits for large amounts and the purchase of foreign real estate can be considered profitable investments. However, you should keep in mind that only a relatively small amount is subject to mandatory bank deposit insurance. Therefore, such investments cannot be considered entirely safe. In contrast, acquiring housing is guaranteed to save you from losses, as real estate is in constant demand and continues to appreciate. For example, you can buy an apartment in Vietnam and rent it out, with returns in cities such as Ho Chi Minh City and Hanoi reaching 6–7% per annum.
Expert advice: where to invest money in 2024
Where is the best place to invest money? It is not easy to find a universal answer to this question. Experts emphasise that much depends on the amount and the geopolitical situation worldwide. In the absence of stability and a steadily developing economy, there’s a high probability of inflation, diminishing the purchasing power of money.
As we mentioned above, the most popular and safest strategies include:
- Bank deposits
- Investments in apartments or houses
Foreign housing stock remains the most attractive. In many countries, including Vietnam, apartments can be purchased at fairly affordable prices and the returns on them are often high.
How to invest abroad profitably
Property investments abroad for individuals follow a proven procedure, which includes several steps:
- Developing an understanding of the requirements that the property must meet and what budget should be allocated;
- Studying the local market and selecting the most attractive offers;
- Obtaining advice from a professional broker;
- Preparing for the transaction;
- Signing the agreement.
Property investments in Vietnam
The country’s real estate market is currently developing and strengthening. In 2015, it opened its doors to overseas buyers, who can own property through a leasehold. If you are thinking about what to invest in now, consider the main advantages of local real estate:
- Still affordable prices. The minimum entry threshold is about USD 100,000.
- A steadily growing economy, which stimulates demand in the housing market.
- High ROI.
On our website, you can explore current listings and find a suitable apartment or villa in Vietnam today! Experts will be happy to help you choose a highly liquid and profitable property.