As more and more people get on the internet with each passing moment, the term investment becomes more and more common. The word has become so common in the recent years that it is now being used in the wrong sense. People would say they are making investments when buying the big screen TV or a car for their daily commuting. What they forget here is that you don’t invest unless you are buying something purely for its increased value in future and thus profit for you. The car you are buying for commutation is not necessarily an investment because you are not buying it for profit but for your personal use.
Investment can be of many types but the most important thing to remember here is that you have to be doing your transaction for the purpose of making wealth and earning profit for it to be called investment.
Here you will read about the different types of ownership investments that exist:
- Your Business
Having your own business is one of the purest types of investments out there. Why do you want to start a business? Can’t you make money by working for a company? The truth is that you want to make a fortune. In order to make a fortune you will have to be investing your money in starting a business. You start a business and you own it. This business is expected to generate revenue for you as you sell your services and products to the customer.
- The Stocks You Buy
The stocks you buy in a market are your assets. The money you spend to buy them is your investment. When you buy stocks of a company you actually own a share in the company the size of which is the value of your stocks. You anticipate and expect the value of your purchased stocks to go high in future so you can earn profit on your purchase. However, even if the stock value goes down and you suffer a loss, it will still be called an investment because you bought the stocks in anticipation to make profit.
- Precious Metals And Objects
Precious metals and objects that you purchase with the intent of making profit on them in future are also in ownership investment category. Precious metals might lose their value due to the physical damage that occurs naturally to them. Keeping them safe would require spending money which will consequently take a toll on your final profit. Objects can also be investments such as an expensive painting. An ancient item that you think would sell for a huge price in future will also be an investment.
- Real Estate
Real estate investment is one of the most popular types of investments. However, it has to be kept in mind that properties you purchase for making profit will be investments but the ones you have purchased for your personal use will not be considered investments. Real estate investment can be done in many different ways. Some people buy pieces of land awaiting their increased value in future. Some people buy completed properties and rent them out for a steady monthly income.