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Mike Smith
Mike SmithKnowledge Seeker
Asked: September 3, 2023In:

Sometimes majority of individuals think that building a house is an investment but personally I would say that this is an accomplishment and never an investment. Many individuals feel that this view and perspective of mine is wrong, and of ...Read more

Sometimes majority of individuals think that building a house is an investment but personally I would say that this is an accomplishment and never an investment. Many individuals feel that this view and perspective of mine is wrong, and of course building a house whether for commercial or private use is an investment. Anyways, what do you guys think?

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  1. Suba
    Suba Knowledge Seeker

    In theory, building the house itself (without land) is not an investment because the value of the house will be depreciated every year, it also requires maintenance costs, so if you calculate the value of the building it will decrease, making it impossible to get capital gains. But if the value of tRead more

    In theory, building the house itself (without land) is not an investment because the value of the house will be depreciated every year, it also requires maintenance costs, so if you calculate the value of the building it will decrease, making it impossible to get capital gains. But if the value of the land and the house building that you rent out will get rent every year which might be able to cover depreciation and maintenance costs. Meanwhile, the value of land will increase every year, so if you build a house on your own land, the value will also increase, even if you use it as a place to live and this is also known as an investment.

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Mike Smith
Mike SmithKnowledge Seeker
Asked: September 5, 2023In:

Many individuals who engage in a particular investment are also seeing the need to invest in other kind and method of investment and the reason is because they do not want to put their eggs in one basket as advised ...Read more

Many individuals who engage in a particular investment are also seeing the need to invest in other kind and method of investment and the reason is because they do not want to put their eggs in one basket as advised by most investment experts. As future and potential investors we ought to diversify in our financial investments. What are the ideas that you guys have in which this can be accomplished.

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  1. Ovy
    Ovy Active Contributor Overcomer

    Okay, you should first of all know that Diversification has to do with spreading investments across various asset classes like stocks, bonds, real estate, and commodities for the reduction of exposure to a single market's fluctuations. Then you should as well allocate funds based on goals, risk toleRead more

    Okay, you should first of all know that Diversification has to do with spreading investments across various asset classes like stocks, bonds, real estate, and commodities for the reduction of exposure to a single market’s fluctuations. Then you should as well allocate funds based on goals, risk tolerance, etc, Meanwhile, you need to consider geographical diversity to reduce country-specific risks and reviewing and rebalance your portfolio to maintain the desired asset allocation.

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