Hello everybody, people sometimes do ask me which is better real estate or business ,which one should I go for, real estate investment provides diversification , stable market value , long term growth.We have to ask our audience few questions first,
1.What do you think about businesses in general?
2. What do you think about spotting a good, growing, stable business and putting your money into it?
3.Finally, is it your belief that real estate provides store of value or is it the fact?
With that, let’s start our conversation , if we think in a most rational and obvious way and its written there in Wealth of Nations by Adam Smith that, labour is the most important aspect in an human’s life, we can work therefore we can provide ourselves basic human necessities. For example if we work to get the water out from the well, and supposedly get $2 a day with that we go home en route buying ourselves ,food ,some material which will be used as a shelter like a thick quilt or something.We can see that our primary activity is to earn, followed by fulfilling basic necessities and wants.
Businesses and growth in the economy expands the scope of a particular nation , introduces development through parks, houses , fountains and much more. In its very essence , its the growth and development shown by the nation’s businesses that we see a nation building , real estate prices soaring.If we go few hundred years back, the place from where you are reading this article maybe there was nothing, somebody came with an idea to start something to generate few dollars, and houses and civilisation followed.
Thus, if we see in a longer term horizon and a bigger picture businesses and economy growth have always been our primary concern to increase GDP per capita and the growth of the nation. I am in no doubt about ,what is the asset and what its derivative.It is not always that simple, real estate prices , location and population density and many other factors plays a significant role in choosing real estate over businesses(securities). For many people real estate are kind of stable , constant instrument which is guaranteed to provide benefits in the future.
lets answer few questions mentioned above, first we think that businesses are the shoulders on which GDP is carried , we have immense beliefs in the Australian economy and its growth of its businesses.
Secondly, finding a good, growing businesses is not easy, it takes a lot of research, unparalleled analysis and great insights, if you found one go for it, A2 milk company in just 5 years have given investor an return of approx. 3000% , if you invest $10,000 in 2015 by 2020 it will be worth $300,000 , an return of approx. 600% in each year. Thirdly, you know the answer is it just the belief or its proven fact, you know better.
I am a big fan of economy ,businesses ,creativity ,talent , hardwork and grit you see these things in businesses public or private ,small or big everything else are its by-product including real -estate properties. Buy businesses buy Australian businesses and grow your nation.