Where do expats invest their money? part 1 – that will be the topic of today’s article.
Nothing written here should be considered as financial advice, nor a solicitation to invest.
For any questions, or if you are looking to invest as an expat, you can contact me using this form, or via advice@adamfayed.com
It remains my view that private banks usually offer poor value compared to do-it-yourself (DIY) or services like our own.
Introduction
If you live outside your country of citizenship, understanding how best to manage your hard-earned savings and investments can be challenging. Before choosing a provider, it is important to consider various factors that can help you benefit from your expat status.
Experts, analysts, interested businessmen say where it is profitable to invest money in 2022, of course, we will not also avoid this topic. Given the global situation, we see that the emphasis on quarantine restrictions will continue, so companies operating online can safely be considered more promising.
After reading this article, you will understand that it is not at all necessary to be a millionaire in order to increase passive income, you can (and should) start with smaller amounts.
For those who are looking for options where to invest now, the presented tools will become very popular and in demand. Among their main priorities in comparison with others, we will highlight the following:
- The conclusion of official agreements, and as a result, at least minimal, but still guarantees for depositors.
- The possibility of making a profit in a short and very long period.
In some cases, the investor receives an asset for further work, for example, valuable metal can be sold, and real estate can be rented out. Below we will introduce you to the most popular ones.
Stocks
Securities of foreign companies make it possible to receive dividend payments if such are provided for by the company’s charter and financial development indicators for a certain period. But most often they buy shares in order to later sell them through a broker at a higher rate, making a profit.
Internet projects (blogs, online stores)
This is one of the most interesting and promising options where it is better to invest money in 2022 in order to receive money steadily.
And earlier the direction was very popular, but due to the pandemic and quarantine restrictions, it is the online format that will flourish.
In general, investments are similar to investments in a business – you support the development of a particular product, you receive payments in the form of dividends. In the future, you can sell your share on more favorable terms.
Venture funds
According to experts, this year we can expect exits of funds that work and are aimed at improving work processes, including remotely, optimizing the traditional offline business. The average profit starts from 7% per year but can be several times more. But the start from 25 thousand dollars – “bites”.
Real estate investment
An excellent option that allows you to acquire your own square meters, or in the future to rent an apartment, office, shop. This direction does not lose popularity even in times of crisis, although, of course, it has risks, especially if you invest in small amounts during the construction phase.
Is it reasonable to invest in real estate?
There are several options for this direction: rent, sublease, commercial real estate, real estate funds.
Everything is simple in renting: you buy an apartment, look for tenants, draw up an agreement and sign it. The contract specifies the terms, reimbursement of funds for early “departure”, compensation for damaged property, and so on. This type is especially good in large cities for renting out premises to visiting people.
Subletting is when you rent a home to rent out to others. You can rent apartments by the day. The option is promising if the area is located in the city center or in resort towns. But it is essential to draw up the contract properly and notify your landlord of the purpose of the lease.
Commercial real estate. In addition to residential premises, you can buy a plot or a building for rent to commercial organizations. You can build a shopping or business center. You will receive income, but it is important to understand that you will have to invest in providing the building with everything you need: utilities, repairs, plumbing, heating, and more.
In addition to renting and subleasing, you can buy some premises for the purpose of further resale, but for a larger amount.
Another option is real estate investment funds. For example, REIT. REITs are real estate funds that buy or build real estate, rent or sell it, and buy mortgage-backed securities from banks. Anyone can buy shares in most real estate funds. Income from the sale of real estate is distributed among shareholders through dividend payments.
Pros:
- Real estate is always in demand;
- income for the long term;
- Availability of investments;
- High liquidity;
- Large selection of options.
Cons:
- Dependence on the economy of the country and region;
- Real estate prices are quite high;
- Not suitable for small towns;
- Additional expenses.
Force majeure may also occur. Due to circumstances beyond the control of the property owner, the price may drop sharply.
Own business
Such investments are always risky, but how nice it is to invest in yourself, your progress and see how the scale of orders is increasing day by day, and the average bill is growing. What exactly will be the size of the ruble contribution and its payback period will be shown by time, the only thing I can suggest is which directions will not lose popularity and can bring a solid income this year:
- delivery service;
- food delivery with an emphasis on a full menu;
- sale of means of disinfection and hygiene.
Exchange-traded fund (ETFs)
The method is in demand among investors due to the fact that it allows, by investing small amounts, to become a co-shareholder of various companies, including giants.
For readers who are still thinking about where to invest money, starting at an average of $100-150 to receive a monthly income, this option will come in handy. And, of course, you need to choose a reliable intermediary, study which funds work for a long time, and pay consistently.
At the moment, gold is falling in price, silver is getting more expensive, but if you look at the dynamics for the entire period when valuable metals are traded on the market, we always have an exceptionally positive indicator. If you do not want to buy for the purpose of further sale, you can store bullion in banks in deposit boxes and even open a deposit in metals. It is true, nowadays a few banks offer such a service, but you can still find a couple.
Eurobonds
This is, if not the most profitable investment of money today, but one of them because by lending money to the state, you are working with a person who is very difficult to bankrupt (but in fact it is possible). You can also buy bonds of certain foreign companies. In general, the yield per year is no more than 3-7%, but sometimes it is even higher than a bank deposit.
Fondi comuni di investimento
The principle is simple: invest a small amount for a maximum of 3 years and receive a stable income from various companies that form the same fund. Speaking about what is the most profitable investment of money, starting from an average of $ 100, in many countries without risk or with its minimal manifestation, this option should be considered closer. Profit per year is up to 5-6%.
Dividend blue chips
These are shares that belong to the class of preferred ones and allow you to receive income in the form of regular dividend income. Many often such types of securities are issued and listed by companies that operate in the mining, industrial, and IT sectors. The average annual return is up to 12%, but sometimes coupon payments can be suspended due to poor financial performance for the year.
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