If you have some personal capital that you can save and withdraw from your normal family economic life, you can certainly think about investing it in order to get a worthwhile return.
Investing is a great way to increase your income and optimise the economic cycle of your assets, but it is not easy to do so in a specific sector, and the choice will have to involve several aspects to be weighed in the balance, starting from the amount of money you have to the segment in which you want to invest.
Defining the budget
On average, when you decide to invest part of your assets, the average amount varies between ten and one hundred thousand euros. For the sake of convenience, we will consider a mid-range scenario, imagining that we are investing € 50,000.
Is this figure close to your investment idea? If so, it is an adequate budget that allows you to evaluate a wide range of possibilities.
At this point, a fundamental aspect must be analysed: there are high and low return assets, which in turn are intertwined with volatility, i.e. the percentage of possibility that that potential return will translate into a concrete economic return.
Variable return transactions with uncertain safety margin
Investing € 50,000 in business operations must have the imperative of a margin of success, without which the investment is unprofitable, regardless of the amount.
In other words, it is advisable to avoid transactions with an uncertain margin of safety, such as the stock market, certain types of bonds, or trades of which one does not have in-depth knowledge.
This last case is extremely frequent: nowadays, investing in a business (whether established or developing) can become a double-edged sword because it forms part of a context – the national market – which has been extremely volatile, especially in recent years.
Business activities are constrained by high taxes and are often affected by the laws of the market, often led by the big groups and chains in different sectors.
Capitalising by investing in a road operation or a new company puts your investment at a disadvantage, as it will mainly serve to finance start-up costs.
Bearing in mind that the return on investment usually takes place years after break-even, which in turn takes at least five years, it goes without saying that it is very possible that this type of operation could not be profitable.
Where to invest € 50,000?
This type of amount is often linked to the possibility of profitable real estate transactions, which is correct from a theoretical point of view, but in practice is only possible under certain conditions.
First of all, the real estate market is not all the same, and the European real estate market is still significantly affected by a crisis that shows no sign of abating.
On the other hand, there are other, much stronger markets on which one could focus, such as the US.
The US market, particularly in Miami and Florida in general, is perfect territory for investing 50,000 in a property for rent.
Income generating investing is a classic operation that guarantees sufficiently rapid investment returns with limited dedicated capital.
€ 50,000 is an adequate amount to select a fairly wide range of properties on which to assess possible investment returns.
Remida Properties has been working for years to assist, support and assist investor clients who decide to place their capital in real estate transactions in Florida, often opting for the Apartment Building, Property rental and Real Estate Flipping formulas.
The Remida team will then assist the investor in choosing the most suitable property to acquire, based on the stake and the client’s needs, as well as helping with all the bureaucratic formalities that are necessary to complete the deal.
Opening a property lease in the USA is much simpler and faster than in Europe: taxation is lower (to the advantage of the investor) and the necessary paperwork is optimised (to the advantage of the tenant). This makes it possible to start a profitable rental operation to generate an income in a short period of time and to the satisfaction of both parties.