Top 5 High Yield Investments of 2022

Posted on

Catatanpanda.com – When investing, everyone wants maximum results. Just earning 1% to 2% of your money is not as attractive as getting 8% back, 10% or more, and during periods of inflation, higher returns become even more important (because it will make 1% to 2% net negative).

The question, of course, is which high-return investment is the best? In my experience, after analyzing the data, there are five that you should consider.

(It is worth moving a disclaimer here that past performance is not a guarantee of future returns. All investments involve risk of loss.)

1. Real Estate Guild

A strategy in which a number of investors pool resources to purchase a property, real estate sharing can be said to be one of the best ways to achieve high returns.

Investors typically earn 8% to 10% annually, plus they enjoy appreciation as the value of the building increases (while appreciation varies, it is not uncommon to see a 30% to 50% increase).

Since the investment term is five years, this tool has the potential to double your money or more: A $100,000 investment can generate $50,000 over five years of rental income, plus an estimated $50,000.

Pros: Easy to get started (completely negative), high ROI and you can choose your investments and projects.

Cons: Usually requires at least $50,000 worth of purchase, and investors must be certified to participate in this special offer.

2- The real Siwa state

Another way that investors can get into real estate, which also has great potential for return on investment, is through rental properties.

Often people buy and rent single-family homes or apartments; Some will even rent rooms or floors in their main home.

ROI is highly market dependent, but you usually see between 5%-10% per year.

Pros: This method is a direct investment with high returns. You just have to choose a house, buy it and start renting it.

Cons: You will be responsible for managing tenants, coordinating repairs or maintenance, and collecting rental income.

You also need a discount of at least 20% to get a mortgage, and if the tenant decides not to pay the rent, you will be stuck paying it.

Additionally, the tenant can damage the property, leaving the landlord with a repair bill to be deducted from the return.

3- Real Estate Investment Trust

Another excellent way to start investing in real estate, REITs trade on major stock exchanges and usually own a variety of real estate assets. They tend to pay fairly good dividends, with returns that can be as high as 5%.

Pros: REITs are one of the easiest ways to start investing in real estate. You can even trade these shares from your 401(k). Additionally, dividend yields can be huge.

The negatives: This is a stock, and as such is subject to a lot of the whims of the market. Even if the dividend is good, it does not mean that the price of the underlying stock will rise.

4- Cryptocurrency

People seem to either love or hate cryptocurrencies, with little emotional space in between. Those who believe in it have raised the price so dramatically, that Bitcoin – at least by the time the BuyShares article was published in May 2021 – had outperformed major indexes 70 times.

Some still believe that the cryptocurrency has a long way to go, so there is still a high potential for profit even if the price goes up significantly.

Pros: It is easy to invest in Bitcoin, Litecoin, Ethereum and other currencies thanks to the extensive trading sites. You can start with as many or as many as you like.

Cons: It is very volatile – it can quickly lose 50% of its value in a month, or increase by 50%. The potential for profit is high, but so is the risk!

5.Startup

If you love the idea of ​​seizing the opportunity of amazing ideas and new technologies, investing in startups is a risky and potentially rewarding activity.

New organizations are formed every day to tackle some of the toughest challenges the world faces, and most of them need funding and direction to succeed.

If successful, these companies can make significant equity gains.

Pros: There is huge upside potential. One of the biggest success stories is that of Peter Thiel, whose $500,000 investment in Facebook in 2004 made him a billionaire in 2012.

Cons: Too risky. Some companies may become large, but most of them will fail or make little profit. In addition, investors need to count.

Read :   Viva's brother suddenly offered a ring, offered to his girlfriend when TikTok was "live"?
Gravatar Image
I am a person who likes to write and make information related to fruits, because I like and have a mango garden.