Investing in Risk Free Instruments, Fixed Assets or Properties
Currencies for Time Deposits or Government Bonds
Taken from Various Sources - Internet |
The Definition
Risk Free Instruments are the instruments for investments which have very little risk, showed through the very small risk rate, mostly the figure number is below one and almost reach zero. They are the most famous investments, since a lot of people are convenient with them. The investment result is relative small comparing with the Capital Market Investment and it also depends on the figure amount of your own capital. Fixed Assets are the instruments which are commonly used by the investors to expand their funds, the value of them are predicted to increase in certain future period. The characteristic of the fixed assets are very liquid, easily traded in the market and priceless such as precious metals, diamonds, and jewelries. For manufacturing companies, investing in machineries are also considered profitable since the machineries will generate a lot of money from producing the mass products. The payment for them is also considered as capital expenditures which are allowed to be amortized years based on certain countries taxation regulation. |
Properties are the instruments which commonly consist of the Land and Buildings. The value of the strategic location land is predicted to increase from year to year in the future, meanwhile the value of the building is considered decreased from year to year in the future, maybe will need or require further costs for renovation after certain year period.
What products are offered in the Risk Free Instruments, Fixed Assets, and Properties?
The ones that are considered as Risk Free Instruments are Time Deposits for certain periods such as : monthly time deposit, three month time deposit, six month time deposit, and 12 month time deposit; and The government Bonds such as : US T- Bonds (USA), Bund (German), ORI or SBI (Indonesia).
The ones that are considered as Fixed Assets are precious metals, diamonds, jewelries, machineries, etc.
The ones that are considered as Properties are the land and the buildings on top of it.
Suggestion for investing in the Risk Free Instruments, Fixed Assets, and Properties
Risk Free Instruments :
We can start investing in the Risk Free Instruments immediately, since they are relative affordable for everyone. You can start with small amount of money for opening the saving account in the bank, you only need IDR 250,000,- or USD 18.00. If you have bigger budget minimum IDR 10,000,000,- or USD 740.00; you can start the time deposit in the bank.
One Year Time Deposit in USA have interest for 1.30% PA. Minimum investment is only for USD 1,000.00
The strength of the time deposits are :
For ORI (Indonesia), you can start to invest within the range from IDR 5,000,000,- or USD 370 to IDR 3.000.000.000,- or USD 222,222.22. The government is giving 9% PA as the interest rate.
For US T Bills – Bonds which have maturity less than 1 year, minimum invest USD 1,000.00 , the government do not give any interests on them, it is sold below par value and the investor will receive the full amount of the par value at the maturity date.
For the US T Notes – Bonds which have maturity for 2 years, 5 years, etc; minimum investment for USD 1,000.00, and the government give the interest coupons, the payment of the interest is every 6 months.
If you decide to try to invest in the Time Deposits or Government Bonds, and you have only small amount capital for investing, you must consider to have full time job to generate more money for your living costs.
What products are offered in the Risk Free Instruments, Fixed Assets, and Properties?
The ones that are considered as Risk Free Instruments are Time Deposits for certain periods such as : monthly time deposit, three month time deposit, six month time deposit, and 12 month time deposit; and The government Bonds such as : US T- Bonds (USA), Bund (German), ORI or SBI (Indonesia).
The ones that are considered as Fixed Assets are precious metals, diamonds, jewelries, machineries, etc.
The ones that are considered as Properties are the land and the buildings on top of it.
Suggestion for investing in the Risk Free Instruments, Fixed Assets, and Properties
Risk Free Instruments :
We can start investing in the Risk Free Instruments immediately, since they are relative affordable for everyone. You can start with small amount of money for opening the saving account in the bank, you only need IDR 250,000,- or USD 18.00. If you have bigger budget minimum IDR 10,000,000,- or USD 740.00; you can start the time deposit in the bank.
One Year Time Deposit in USA have interest for 1.30% PA. Minimum investment is only for USD 1,000.00
The strength of the time deposits are :
- The Capital cannot be reduced. At the maturity date, you will receive the capital and plus the net interest.
- The risk of the investment is very low.
- The investment amount can become one of the warranty for applying credit cards and other long term installments such as : Mortgage loans.
- You cannot cash out every time you like, you have to follow the bank schedule to cash out the money. But this can help you to discipline yourself following a schedule.
- Since its nature to have low risk rate, the yield may not as big as the Capital Market Investments or from Mutual funds.
- The high bank charges on each month.
- If you decide to cash out in the middle of the term, you will have to pay the penalty to the bank.
For ORI (Indonesia), you can start to invest within the range from IDR 5,000,000,- or USD 370 to IDR 3.000.000.000,- or USD 222,222.22. The government is giving 9% PA as the interest rate.
For US T Bills – Bonds which have maturity less than 1 year, minimum invest USD 1,000.00 , the government do not give any interests on them, it is sold below par value and the investor will receive the full amount of the par value at the maturity date.
For the US T Notes – Bonds which have maturity for 2 years, 5 years, etc; minimum investment for USD 1,000.00, and the government give the interest coupons, the payment of the interest is every 6 months.
If you decide to try to invest in the Time Deposits or Government Bonds, and you have only small amount capital for investing, you must consider to have full time job to generate more money for your living costs.
Fixed Assets :
Investing in Fixed Assets such as Precious Metals, Diamonds, and machineries, you must prepare spare money for buying them. Investing in fixed assets, have a risk too, just in case they are becoming obsoleted or malfunction so that you cannot use them anymore for production. That’s why before you buy them, you need to know that they are in perfect condition. For machineries, they have been proved that they can be fully function for production. For Precious metals, Diamonds, and Jewelries; if you do not have experience for buying them, you need advices from the experts about their values. You must be careful, do not be cheated by the un-responsible suppliers or villains in the markets. Not to buy the artificial ones, which are supposed to be very cheap. These days, it is quite easy to create artificial precious metals or diamonds that are looked alike as the real ones. |
Gold Bars & The Charts
Taken from the Author's Private Collection & Oanda |
Investing in Fixed Assets, you must remember that “you buy when they are Undervalued or during Downtrend. And you only sell them during Uptrend or Overvalued”. With this way, you will be prevented from loss.
Since Precious metals, Diamonds, and Jewelries, are considered limited in this world. They cannot be renewable, they will become rare in the future. That’s why the chart of their prices always form positive curves, this means if you invest for long term, you will have increasing value. If you sell them in the future you will get capital gains.
Properties :
Investing in properties, you will need to prepare big figure number of funds, because these day the price of land and building in the strategic area is considered very expensive. Before you buy, you will need to research or asking opinion from the architects or land experts about the land and building conditions, whether they are in perfect conditions, the land are safe for further building (especially for the land which are located near the sea or the river). You will also need to deal with the Solicitors and lawyers, you will need to be sure that the owners of the properties having all the legal documents that stated they are the legal owners. You also have to know that the land and Building that you will buy, it is not in the arbitrary trial or serious disputes.
Investing in the properties, you must remember that you buy if the price is reasonable and the property condition is perfect according the land and building experts. You only sell when the prices have been increasing in the future, so that you will definitely have profits from them.
Besides selling the properties, you also can rent them daily, monthly, or yearly. You can generate big figure number incomes from renting them. The ones that definitely become good sources of incomes are the properties which are located in the strategic area or sightseeing area. You can build hotels, motels, or villas on them; and gains monthly incomes continuously.
But be careful, building or developing more further the properties has risk too. The risk for being obsoleted, if the lodgments are not becoming famous or favorite to stay; they are not be able to generate any incomes. The way to keep attracting visitors to stay in your lodgment is as follows :
That’s all the suggestion for investing in the Risk free Instruments, fixed assets, and properties. When you start to invest, just remember the investment legend, “ Do not put all your eggs in the same basket, if it is fallen, you will not have all the eggs broken”.
Good Luck!
Useful Resources :
http://www.chestertons-international.com/
http://www.worldproperties.com/en/Properties.aspx
http://www.theagencyre.com/luxury-real-estate/international/
http://wetherell.co.uk/?
gclid=Cj0KEQiA0sq2BRDRt6Scrqj71vQBEiQAg5bj08rus7POt7clgN7hVPv0DBpHI0MeZUsYpHVFKwYwHw8aAnK78P8HAQ
http://furtherrealestate.com/?gclid=Cj0KEQiA0sq2BRDRt6Scrqj71vQBEiQAg5bj03mZ3gs7r8X8kDyUj383X9eHfqjMtGZivlYF7YfPDrAaAprx8P8HAQ
Since Precious metals, Diamonds, and Jewelries, are considered limited in this world. They cannot be renewable, they will become rare in the future. That’s why the chart of their prices always form positive curves, this means if you invest for long term, you will have increasing value. If you sell them in the future you will get capital gains.
Properties :
Investing in properties, you will need to prepare big figure number of funds, because these day the price of land and building in the strategic area is considered very expensive. Before you buy, you will need to research or asking opinion from the architects or land experts about the land and building conditions, whether they are in perfect conditions, the land are safe for further building (especially for the land which are located near the sea or the river). You will also need to deal with the Solicitors and lawyers, you will need to be sure that the owners of the properties having all the legal documents that stated they are the legal owners. You also have to know that the land and Building that you will buy, it is not in the arbitrary trial or serious disputes.
Investing in the properties, you must remember that you buy if the price is reasonable and the property condition is perfect according the land and building experts. You only sell when the prices have been increasing in the future, so that you will definitely have profits from them.
Besides selling the properties, you also can rent them daily, monthly, or yearly. You can generate big figure number incomes from renting them. The ones that definitely become good sources of incomes are the properties which are located in the strategic area or sightseeing area. You can build hotels, motels, or villas on them; and gains monthly incomes continuously.
But be careful, building or developing more further the properties has risk too. The risk for being obsoleted, if the lodgments are not becoming famous or favorite to stay; they are not be able to generate any incomes. The way to keep attracting visitors to stay in your lodgment is as follows :
- Keep the properties in clean and tidy condition.
- Giving the visitors five star hotel treatments and offers, even though your properties are not considered as five star hotels.
- Keep the amenities available every time guests of your lodgment need them, keep them in perfect condition, clean and tidy too.
- Keep promoting the sightseeing area nearby and your lodgments in the social medias, local and overseas third parties medias such as : newspapers, magazines, also television channels.
- Giving the loyal customers big bonus if needed.
- Co-operate with the third parties which are related to the tourism businesses like tour and travel companies, airlines, car rental companies, etc; so that they are also remember your lodgment if they are visiting the sightseeing area
That’s all the suggestion for investing in the Risk free Instruments, fixed assets, and properties. When you start to invest, just remember the investment legend, “ Do not put all your eggs in the same basket, if it is fallen, you will not have all the eggs broken”.
Good Luck!
Useful Resources :
http://www.chestertons-international.com/
http://www.worldproperties.com/en/Properties.aspx
http://www.theagencyre.com/luxury-real-estate/international/
http://wetherell.co.uk/?
gclid=Cj0KEQiA0sq2BRDRt6Scrqj71vQBEiQAg5bj08rus7POt7clgN7hVPv0DBpHI0MeZUsYpHVFKwYwHw8aAnK78P8HAQ
http://furtherrealestate.com/?gclid=Cj0KEQiA0sq2BRDRt6Scrqj71vQBEiQAg5bj03mZ3gs7r8X8kDyUj383X9eHfqjMtGZivlYF7YfPDrAaAprx8P8HAQ