A tangible investment is a physical asset that one can own, such as land and property. Tangible assets exist outside of your bank account balance, financial statement or exchange market. Tangible investments are a means of reducing overall investment risk through diversification.
When it comes to these kinds of assets, many people either overlook their value or simply cannot afford to put cash away regularly for something that isn’t instantly available for use. Hard assets are often something that needs to be invested in and planned for in order to see a return at a later stage.
Hard assets or personal property might seem like a pipe-dream to the vast majority of South Africans, but the truth is that many individuals aren’t aware of the opportunities available and tools at their disposal. At the end of the day, when you’re living month-to-month on a salary that factors in the basic living expenses, a monetary commitment that only pays out in future does seem like a luxury.
Ask yourself this important question:
Why do you invest in car insurance or pay for a medical aid that is only used on the off occasions of incident and illness?
Many people spend hundreds of thousands on these intangible investments throughout their lifetimes and never see any returns. It’s just money that disappears from their bank account on a monthly basis, and the receiving corporations who have no issue cashing the cheque. Your hard-earned money is going towards building properties that you will never have access to. That is the sad reality.
In an ideal world, every shareholder, be it a customer or lower-level employee, should be given shares based on their investment towards the companies that they patronize. Until then however, we are to seriously scrutinise how and where we choose to spend our money. Realty or tangible assets are a way of not only securing your future but your children’s future as well.
Isn’t it time you looked to the future instead of the right now? Perhaps you’re ready to take the leap but have no idea where to start.
At Gondovect Properties, we ensure that individuals are ready to take the first step in owning their perfect home. We understand that the process towards homeownership can be a long and stressful one and, therefore, we make it our mission to make it as stress-free as possible – from the initial design to the final product. Your first step towards property ownership starts with us.
