What investment option is best for you?

We will look at the different types of investments available with Stephen Johnson, commercial property investor. Stephen explains why he decided to invest in commercial property.

In this video we will cover the PROs and CONs of different investment options including

• Different types of Cash investments

• Variety of different Shares and Business Investments

• The option to Start a Business

• Investing in Residential Real Estate

• And Commercial Property Investing

Cash Investments
Rate of Return is between 2% to 4%
Can’t borrow money against
Typically you can’t use this income for another investment
Usually return is lower than the rate of inflation

Shares
Rate of Return is between 5% to 20%
Very few banks will lend you money based on this income
Must be very good consistently to generate wealth

Start A Business
Great returns are possible
Will require large amount of time and possible require you to learn new skills

Residential Real Estate
Many strategies to make money
Usually you see a growth in capital appreciation but struggle to see positive cashflow

Commercial Real Estate
Best ROI in terms of Cashflow
On average 2% higher returns than residential investments

One of the critical factors in Commercial Investing, is that you are not only buying the building but also the income stream from the tenant. If a property has no tenant, this will drastically alter the value of the property.

Always remember, to have diversity in your portfolio. Don’t follow just one strategy and that will set you up for long term success.

Next Up Lesson 3 Switch From Residential To Commercial