Before taking a step into investment, it is wise to evaluate all your options. As an investor, you want to see your money grow. Therefore, it’s advisable take a moment to find the best investment options in Australia, especially if you have 100k or more.
What is the best way to invest 100k in Australia?
Knowing exactly what you want and how to get it is a good start. Investments have varying returns, risks, and performance. Some may seem rewarding but as time goes by you realize they are bad investments.
Investing is a big deal because it comes with risks. As such, you don’t want to make the wrong choice especially with a sum as large as $100,000. You have to be ready for the setbacks and stumbles that come with investments.
So, how should you go about it? Below we take a look at some of the smart investments in Australia.
How to invest 100k
$100,000 can get you a range of investment options in Australia. The choice on where you place your money is however dependent on you.
Here are some options:
Investments in the stock market can be rewarding. Depending on the equities you choose, you’ll earn good returns. Publicly listed shares, for instance, can bring good profits. This, however, doesn’t mean you can’t incur losses here.
Attributed to the fact that they are very volatile, shares can bring losses. Their prices dip and rise depending on different internal & external factors.
Warren Buffet (chairman of the Berkshire Hathaway) is one of the successful people who have made huge returns through stock trades. Not that stock investments automatically earn you billions. The point is you can get good returns by playing smartly in the stock market.
Besides, who is to say you can’t become a billionaire?
You can buy stocks and sell them when their prices go up. Invest in those stocks that you anticipate to have a price rise. Determining the company whose stock will likely fetch you profit is a challenging exercise.
You can read out guide on how to buy sp500 ETF if you are from Australia.
It calls for in-depth research of the stock market while considering key factors like:
- The company’s position and growth
You have to be aware of the company’s position. It is important to know if the company’s product or services will be viable in the coming years. Also, whether the company has room for future expansion.
- Company level and its competitors
Aside from knowing what the company deals with, you have to be aware of its competitors. Trendsetters and fast-growing companies have ideal stock to invest in. Avoid investing in struggling companies. Upcoming ones are doubtful but may be worth a shot.
- The past, present and prospective company performance.
The trends in a company’s performance over the past year do tell a lot. How a company will perform in the future can be foreseen. Therefore, you can get an illation of whether or not to invest.
This is not always 100% reliable though. Some companies have had bad years but still rose back to their feet.
The right stocks will reward you with huge returns.
Being a transparent broker, eToro has you covered if you want to invest in stocks. Visit eToro and get started with your investment.
2. Real Estate & Property
Be it granny flats or car spaces, properties are good investments. All you have to do is find the right property at the right location and time. Real estate in Australia is really profitable too.
ASX/Russell Investments 2018 Long-term investing report showed that residential property had an 8% gross annual return over 10 years to 2017. At the same time CoreLogic – a property analytic firm – has reported that house prices in Sydney have taken a dip of 5.6% between 2017 and 2018.
The property market has its highs and lows. Investments in real estate are costly but rewarding nevertheless.
Keeping in mind the Golden rule ‘Land value goes up while the value buildings go down’ you can invest in properties and earn big. The location is really important.
The easiest way to invest in Real Estate is through the HighLow brokerage firm. The firm offers excellent services to meet your needs.
If you’re afraid of risks, gold is your investment option. This is because of the stability of its value. Gold is rarely affected by stock market factors. The biggest factors influencing gold value are monetary policy and supply & demand.
In Australia you can invest in gold in three ways:
- Buying physical gold (bars) or its products such as jewelry. As it is a valuable item, you have to securely store your gold items.
- Through Exchange Traded Funds by securing shares of funds that own gold products & items
- Taking equity in companies mining gold.
Although gold investments have stability, they earn little gross returns.
For gold investments eToro is your best bet. With offices in Australia, eToro will help you grow your money.
Cryptocurrency stands out in this list because unlike the rest, this is a new investment. Popular ones include Bitcoin and Ethereum. Bitcoin, for instance, has a value of $12,359 in Australia. Cryptocurrencies, however, are volatile hence not suitable if you’re after a stable investment.
Most governments & institutions are adopting the blockchain system. This is a huge boost to cryptocurrency investors.
HighLow provides the easiest way to invest in Cryptocurrency. Investors consider this Australian based brokerage firm reliable and trustworthy.
Government bonds are also a recommendable investment. The average return of government bonds is over 6% hence an ideal investment in terms of returns. Cash investments offer liquidity but generate low returns.
Gearing up to invest 100k?
Bear in mind the investing rule: invest what you can afford to lose.
Even with the best investment plans, unexpected factors could wreck up your returns. It’s therefore wise to invest with a small sum before trying huge long-term investments.
You can start with small investment on HighLow
It is unwise to invest all your money when you have needs and expenses to meet. If the investment goes wrong, you’ll be left devastated.