| $ | |
| % | |
By FinanceBuddy Staff Writer
Many so called high yield investment schemes are anything but high yield. Such schemes often involve the apparent use of so-called prime World Bank financial instruments. As should be obvious now, such schemes do nothing but inflate prices beyond their real worth, and unless you are lucky you will lose your investment. In reality, assured high yield investment is a much lengthier enterprise. One way to approach high yield returns is to not think of the return on your initial investment, but rather on what your investment can purchase. The classic investment strategy is to purchase property via a loan, using your investment to pay fees and deposits. This allows relatively small increases in property prices to mirror very large increases in the value of an initial investment, In order to ensure a high return it is necessary to know what you are doing. That is, know the field you are investing in. If property looks like a poor investment, as it does at the moment, try investing in antiques or musical instruments or oil paintings. Just do your homework carefully, methodically and extensively, it's worth the effort. Do not rush it and do not take chances. If you are investing in a hobby of yours you are half way there. The key point to remember is that if a high priced commodity, maybe an art work or whatever looks like doubling in couple of years, a loan and a deposit may be far lower than any returns you make. If for example you put in 10 percent and the commodity doubles in value, you have made 1,900 percent gross on your investment in a couple of years. You will need to allow for selling fees and loan payments and of course for the tax man. An accountant who deals with tax can smooth the way. So, OK, maybe you will only make a miserable 1,000 percent in two years from doing nothing except some research and waiting and nerves of steel. Beats working for a living anyway!