Where it is profitable to invest money in 2024 and save it – investment rules

Where to invest in 2024? Options for profitable investments with a guaranteed profit for those looking ahead into the future.

The ability to manage your money properly is a valuable and very useful skill that not everyone has but which can be learned. And we need that skill now more than ever. The year 2020 has become a serious test for us with regard to financial literacy. Especially, since the crisis with the economic instability has furthered the gap between us. On the one hand, you have people without a financial cushion who were (and in some cases still are) powerless during the crisis. While on the other hand, you have those who were fortunate enough to have previously invested some of their money in third-party areas. Meaning that they at least have a small profit to look forward to. However, there’s one thing that the crisis has taught all of us and that is to appreciate the importance of having a backup option for a rainy day.

So now that things have started to get back to normal, or as normal as they can be, people have undoubtedly learned from this experience. In particular, where profitable investments are concerned for the future. They’ve become savvier and are looking into the various ways one can profitably and safely invest their money. One such investment method that’s quite interesting and popular is passive income. The experts at Emirates.Estate have looked into this matter in more detail and have taken the time to share some of their insights with us in this article.

Content:

• Preparing for investment
• Creating a financial cushion
• What you can invest your money in
  • Opening a bank deposit
  • Bonds
  • Stocks
• Mutual funds
• How to invest profitably abroad
• Real Estate investment in Dubai and the UAE
• Ways to invest money in real estate in Dubai
• Summing up

Preparing for investment

To create a suitable and reliable strategy for saving money, you need to take into account several factors such as estimated profitability, the total amount of money involved, and expenditure plans (you can either invest the entire amount on a one-time basis or you postpone it beforehand).

Also, it is important to understand that there is no way to invest anything without a certain amount of risk being involved. More specifically, no matter what, where or how you invest, there will always be a degree of risk involved when investing. Furthermore, there might also be a chance that the investment will not meet your initial expectations. So for this reason, it is important to properly prepare for investments well in advance.

Creating a financial cushion

Ensuring that you implement a financial cushion is a necessary condition before preparing to do any type of investment. Therefore, it is advisable to save up enough money that will allow you to live safely and comfortably for at least 2-3 months. This way, you can make financial decisions more easily. So this money, which is now your financial cushion, you can store yourself in cash or put it away in a bank account.

However, if you want to safely store this money properly, you should divide the entire amount of money into three currencies, namely, rubles, euros, and dollars. This is a rather resourceful way of safeguarding your financial cushion. Especially, in the event of a drop in one currency and a rise in another, the bulk of your money will be saved. This advice is especially relevant for Russia in 2024.

Next, we will go straight into looking at the various ways one can invest capital safely and profitably.

What you can invest your money in

Opening a bank deposit

This is the typical way to save money and one that most of us are familiar with. This method won’t bring you a great amount of profitability, but the percentage of passive profit will be stable. At the moment, the key deposit rate is 4.5% per annum. Also, while this method of saving money is guaranteed to bring you profit during the inflation period, you need to remember that it’s not suitable for obtaining large amounts of money.

Bonds

A bond is a security paper that shows that its holder has provided a loan to a company or the state. In addition, the bond holder can receive regular income at a percentage of its value. Moreover, a fixed amount of income together with minimum requirements combine this method of saving money with that deposits in the bank.

The minimum amount of money required for investing in bonds is from 1000 rubles onward. However, it is better to use 10 thousand rubles. This way, you at least get a stable profit back in return. So you can end up purchasing 10 different bonds and start building up a stable portfolio. Also, the share of each bond is at least 10% in a stable portfolio.

Stocks

Purchasing shares is the most popular type of investment. All you need to do is simply purchase a share/shares in a company and you can start earning a passive income. Furthermore, the profit from share purchases is accrued in two ways, namely:

1. Dividends

   More stable and financially profitable, dividends will bring you shares from well-known institutions such as banks, retail companies, and gas and oil corporations. What’s more, the main owner(s) of the institution decides how much money to charge the shareholders at the meeting.

   Non-individual shares are the other category. Here, the investor earns with their own help and on the cost growth, not on that of the interest.

2. Stock trading

   Trading stocks involves high investment risks. In this case, no one can guarantee you a profit. You can reduce some of the risk(s) by diversifying your assets. That is to say, you can purchase shares from several different companies at the same time and invest them accordingly. Most importantly though, it is important to follow the development of these companies in order not to lose the choice, their reliability, and credibility. It is also important to pay attention to the foreign market because here, there is a greater variety of pharmaceutical and technology institutions that will provide you with profitable investments.

Mutual funds

Mutual funds are another profitable investment. In this case, you entrust your money to the management company and it uses it to make a profit. This method is suitable for those who do not have time to understand the specific features when it comes to working with securities and exchanges.

Advantages of investing in mutual funds:

• Your investment is under legal protection.
• No need to analyze the market situation.
• The minimum amount of money required is an investment of 1000 rubles or more.

Disadvantages:

• Access and withdrawal fees from this fund.
• Income tax on mutual funds is 13%.
• There is no 100% guarantee of any income or profit.

So overall, monitoring the activities of the institution in charge of your investments will help you to reduce your losses.

How to invest profitably abroad

Real estate and savings are the most common and traditional investment options. Under favorable conditions, the income from such transactions can be anywhere from between 7% to 10% per annum.

Also, real estate investments have proven themselves to be the best in the international market. Furthermore, despite the high minimum amount of money required for a person of average income, this type of investment offers:

• Quick return on investment due to high profitability of housing.
• High monthly income.
• The possibility of selling at a higher price.

Real Estate investment in Dubai and the UAE

Real estate in Dubai is successfully establishing its reputation in the international housing market.

Factors that are (further) positively contributing towards this include the attractive economic conditions, the developed infrastructure of a modern metropolis, a lot of real estate under construction and ready-made properties, developed tourism conditions, and a generally high standard of living. So all of these factors not only assist the UAE in staying ahead of other countries but also continue in supporting its status as a promising investment platform with trustworthy conditions that investors from all over the world can depend on.

Dubai’s popularity with regards to it re-establishing itself independently has increased in recent years. This can be seen in people finding and renting their favorite type of apartments with suitable living conditions in an attractive part of the city, thereby increasing the profitability of local apartments. Moreover, the real estate market is now on the rise in Dubai and the demand is exceeding the supply. So this is why an apartment will always be a popular and attractive choice, especially if it’s located in a suitable residential complex with comfortable living conditions. So as you can see, real estate investment in Dubai is a reliable and potentially profitable type of investment with a quick return.

Ways to invest money in real estate in Dubai

Purchasing property for rent

In Dubai, it makes more sense to give first preference to real estate from the developer. This way, you will be able to ensure:

• No unpaid debts from the previous owner.
• All vital communications are in their original form and there are no power outages.
• A prompt and secure transaction with the developer.
• Advantageous conditions for obtaining a mortgage.
• The possibility of obtaining a residence permit in the UAE.

Advantages of the UAE as an investment platform:

• Stable demand for real estate (commercial and residential real estate).
• Quick return and high profitability.
• Loyal conditions for foreign investors.
• A wide range of medium and high price segment properties.
• The presence of Freehold zones where the buyer becomes the rightful owner without having to pay state duties and taxes.

Real estate is one of the most profitable and actively developing sectors in the UAE. What’s more, the average price for real estate is around $6,000 or 22,000 AED per 1 m2. Also, in Dubai profit from renting a villa is valued at between 3-6%, while profit from renting an apartment is valued at between6-10%. In addition, each year profit from renting out a small studio apartment costs $15,000, while a one-bedroom apartment will cost you about $20,000 – $25,000. Furthermore, apartments with 2 and 3 bedrooms will cost you $40,000 – $56,000.

Summing up

We recommend that you pay particular attention to investment programs in banks. Alternatively, you can also purchase bonds of state-owned institutions and large holdings to avoid risks such as:

• If you have a large amount of money and are willing to risk it, we advise that you build a stable share portfolio. Also, if you’re looking to employ new investment strategies, you should purchase mutual funds – especially having previously read all about it in detail.
• We do not recommend contacting institutions that promise any immediate big returns or profits. This is often a manipulation tactic made up to trick uninformed people.
• You should divide the money into different investment schemes for safeguarding and growth. For example, if you have 40% capital to invest in total, you can divide 30% of your money into deposits, bonds, or portfolios. And the remaining 10%, you can invest in more risky projects.
• You should invest in real estate abroad. This way, you can earn a passive income in the long run by renting out your property or by getting a good profit from the resale of it.

Try your hand at foreign real estate investment in Dubai by getting in touch with a well-known developer like Emirates.Estate. We offer professional advice and support since our experts have several years of extensive experience in the UAE real estate market. Plus, we also have access to a wide range of commercial and residential properties. Don’t delay and contact us today!