The Best way to invest a million dollars in 2023? (Part 3)

Investments in precious metals

Gold and other precious metals are considered a protective assets - demand for them is increasing in times of economic instability. Experts recommend that you keep a part of your capital in gold to reduce the risk of capital loss when trading in uncertain market conditions. Precious metals have high liquidity; you can sell them quickly at the current price and use the proceeds to buy other investment assets.

There are many ways to invest in gold:

• You can buy gold bullion in a bank;
• Sign a CFD for gold;
• Purchase an Exchange Traded Fund for Gold (ETF);
• Invest in a fund secured with gold;
• Invest in collectible gold coins;
• Buy shares of gold mining companies;
• To open an unallocated metal account (UMA) with a bank.

Pros of investing in precious metals are high reliability of investment, liquid assets, and protection of capital from devaluation as a result of inflation.

Cons - relatively low profitability.

Real Estate Investments

A classic way to invest a million to save and multiply funds is to buy residential or commercial real estate. There is a wide variety of strategies for investing in real estate:

• Buying apartments in new construction at an early stage of construction in order to resell at a higher price after the house is commissioned;

• Buying apartments in the secondary market in a state "under repair" and reselling them after the repairs have been made;

• Buying one or more apartments in order to earn money by renting them out on a long-term or daily basis;

• Buying an apartment in a building that is professionally managed. In this case, all operations for renting the property are performed by the employees of the management company, and the owners receive a passive income;

• Investments in commercial real estate (offices, retail space, warehouse hangars, etc.) for the purpose of renting to businessmen;

• Buying a large apartment converted to a hostel;

• Construction from the scratch commercial facility - store, service station, warehouse space, etc., with subsequent lease or organization of their businesses.

Each of these strategies has its own characteristics, depending on your objectives.

Investing in real estate has many advantages:

• You acquire an object that will bring income for a long time;
• If necessary, you can sell the property and get a return on your investment;
• Real estate can be used for residence or commercial activities. They can serve as collateral for a bank loan, they can be inherited, donated, and dispose of as real estate at your discretion.
  

This way of investing is not without disadvantages:

• High entry threshold - the purchase of real estate requires a significant financial investment;
• When buying apartments in new buildings, there is a risk of incomplete construction or cooperation with an unscrupulous developer;
• It is necessary to properly estimate the object prior to purchase in order to get a return on investment;
• High associated costs - realtor's commission, taxes, repair and reconstruction costs, etc;
• Long payback period - some of the objects pay for themselves within 20 years or more;
• There is a probability of investing in "illiquidity" - objects that are not in demand among tenants and will become a source of expenses instead of income.

In general, real estate remains a promising area where to invest a million - with the right choice of object, these assets bring income for decades.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.