Both the government of the country and well-known brokers constantly tell us that we need to invest in the American financial market. This idea is shown on the Internet, on TV channels, and printed in newspapers. Look at the ads. Here, even the weather forecast is shown less often than the share price.
And this is actually correct. The fact is that the financial literacy of the American population is much higher than that of people who live in other countries of the world. In the United States, people make huge amounts of money buying and selling securities.
Although there was a market crash in 2008, in which people lost their money. But it was the first event in 90 years. Therefore, confidence in securities has not diminished. This financial instrument is still in the lead. And for good reason.
If you invest in bonds, share, and other securities, you can make great money, cover the interest rate on loans and get an average of 10-15% of monthly income for life and travel.
Americans mainly invest in real estate securities, pension savings, and shares of world-famous companies. Now we will figure out why investments in financial securities for real estate are considered one of the most popular.
What is crowdfunding
This is a full-fledged investment tool that allows you to earn 8-9% per annum. This concept covers not only real estate but also other investments. But it is lease agreements and financial papers that allow you to get a share in this area of activity that currently occupy the second most popular place in America. Judging by the latest polls, it becomes clear that more and more Americans trust this particular area of investment. Such a financial instrument is considered the most stable.
How is crowdfunding different from the physical purchase of a house, apartment, or office? In fact, there are practically no differences. But before, in order to invest in real estate, one had to accumulate a large amount. When building a house, it was necessary to take out a loan, invest in repairs. And then, after many years, a non-financial asset was obtained.
Now, thanks to crowdfunding, it is possible to earn money on the real estate market with as little as $1,000 of an asset. You become the lender of the object through bonds. To do this, you can use special crowdfunding platforms. For those who have more money, there is an opportunity to redeem securities for a share of a certain object. After it is sold, or a house, apartment, office is rented out.
If we compare investing in real estate securities in different countries, we get a very interesting point. In Europe, for example, such a business is just beginning to develop. In Russia, income from funds invested in this way is not provided. Basically, people around the world finance the construction of real estate or its purchase in full, receiving a reward for it. In America, with the help of crowdfunding, investors can receive financial returns in the form of interest if they bought out a loan agreement or part of it. There is also the possibility of dividends when it comes to shares on real estate.
And, although crowdfunding can be called a fairly new tool for investors, it has already become very popular. 58% of Americans are ready to invest in 2-3 projects every year. Of course, if you are not ready to take risks, there are more conservative investment instruments, for example, through the stock exchange.
Conservative instruments for investing in the stock market
It is an investment in stocks, bonds, and treasuries through the stock exchange. Basically, you can invest in any company of your choice, as well as real estate, only through a broker. This option offers the lowest risk. But the profit is also not very high here. Americans show a high interest in the stock market, not everyone is in a hurry to invest in it. Therefore, think about what will be more profitable for you and start investing.