Using Money To Make Money
<pre class="ql-syntax" spellcheck="false">What would <span class="hljs-keyword">do</span> <span class="hljs-keyword">with</span> $<span class="hljs-number">25</span>,<span class="hljs-number">000</span>? <span class="hljs-keyword">If</span> you think about it, you really have <span class="hljs-keyword">only</span> two options. You can blow it <span class="hljs-keyword">on</span> something that won’t make you money, but may bring you <span class="hljs-keyword">some</span> kind <span class="hljs-keyword">of</span> happiness, <span class="hljs-keyword">for</span> example a <span class="hljs-keyword">new</span> car <span class="hljs-keyword">or</span> a LCD HDTV Television. <span class="hljs-keyword">Or</span>, you can <span class="hljs-keyword">use</span> that money <span class="hljs-keyword">to</span> make more money; much more. </pre><blockquote>If you had decided to deposit the $25,000 in a long term CD, earning you 10% interest per annum ten years ago. You would have just about $50,000 right now, doubling you initial investment.</blockquote><pre class="ql-syntax" spellcheck="false"> </pre><p>make-money-roadsign_480.jpg</p><p>Photo credit: Cristian Andrei Matei</p><pre class="ql-syntax" spellcheck="false"> Putting your money into something that will make you more money <span class="hljs-keyword">is</span> always a good idea, but the problem many people have <span class="hljs-keyword">is</span> that, they <span class="hljs-keyword">do</span> know what are the best investments. It’s my hunch that the Caribbean will soon experience a real restate boom, so my vote <span class="hljs-keyword">is</span> still <span class="hljs-literal">on</span> real estate <span class="hljs-keyword">as</span> the <span class="hljs-comment">#1 form of investment.</span> Here a hypothetical example – It’s <span class="hljs-number">1997</span>, you have the same $<span class="hljs-number">25</span>,<span class="hljs-number">000</span> to invest. Someone approaches you with the opportunity to be a partner with him <span class="hljs-literal">on</span> a <span class="hljs-number">6</span> unit office building <span class="hljs-keyword">in</span>, say, Bridgetown-Barbados. You each will put $<span class="hljs-number">25</span>,<span class="hljs-number">000</span> <span class="hljs-keyword">in</span> <span class="hljs-keyword">as</span> a down payment; you’re able to buy a building worth $<span class="hljs-number">370</span>,<span class="hljs-number">000</span> (<span class="hljs-number">25</span>% down payment, <span class="hljs-number">75</span>% loan <span class="hljs-keyword">from</span> the bank). Over the past ten years the Bridgetown (B’dos) market has seen appreciation <span class="hljs-keyword">of</span> <span class="hljs-number">150</span>%. So, <span class="hljs-keyword">in</span> <span class="hljs-number">2007</span> your building that you bought <span class="hljs-keyword">for</span> $<span class="hljs-number">370</span>,<span class="hljs-number">000</span> <span class="hljs-keyword">is</span> now worth $<span class="hljs-number">925</span>,<span class="hljs-number">000.</span> This <span class="hljs-keyword">is</span> why real estate investments can make you a ton <span class="hljs-keyword">of</span> money: leverage, appreciation, income, <span class="hljs-keyword">and</span> tax savings. Now all you’ve to <span class="hljs-keyword">do</span> <span class="hljs-keyword">is</span> find a way to make <span class="hljs-number">25</span>,<span class="hljs-number">000</span> 🙂 </pre><p><br></p>Related post
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Angela Lawton
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