Invest on a house they say, invest on a car they say and invest on a good old watch they say. Often, we were told to invest on material things, and we thought investing on these items are all worth it.
People often tend to equate investment with an expensive purchase. But these items, these material things are liabilities and not assets. So, liabilities are dead investments once they get off the market. They don’t earn money for you, they don’t fatten up your wallets and add zeroes to your bank accounts.
But, there are smart ways to keep these dead investments alive and earning with cash. Check them out below:
A lot is an investment whose value allocates over time, but sometimes a house just doesn’t do that. It is a golden rule for investors to keep that the physical structure or the content of the land depreciates over time while the lot or land underneath the structure appreciates over time.
The value of a real estate always depends on “location, location, location.” A house’s value plummets with factors such as: overall decline in the market, lack of maintenance to the home, localized changes in the neighborhood. So, when selling a house, you have to get it assessed to know its value.
How to keep the investment alive? You can make this investment alive if you rent it out. The location matters as well, if your house stands in a tourist destination like Baguio City, then sign in up in an online home stay network like Air BnB or provide transient options to travellers. Plus maintenance is always key to keep the value of your home from depreciating fast.
The moment you buy phones off the market their value depreciates, and fast. With phones getting updates almost every year or a few months after the release of the latest one, well, it is not surprising to know that its value plummets fast. The only way to keep that dead investment alive is if it becomes an asset. An asset means something that earns money for you.
How to keep the investment alive? The phone is a dead investment but its phone number can be real, albeit intangible, asset because it is the lifeline of your connections especially if you are a business person or own a little company. If you get the feeling that it’s okay to get your phones snatch but it’s bad not too because you keep important contacts and a whole lot of important stuffs in your phone. But if you get your phones to be a earning with cash, you can get it to retail load, especially for the old models. Communication is everything anyway.
Yes folks, (except for the rare vintage). The car value depreciates as well, the depreciation is a silent thief. It is a dead investment because you pay for it by spending for its gas and its maintenance. The only investment you get are intangible assets: convenience and privacy, but traffic just kills convenience as it eats the “time” you need.
How to keep the investment alive? To make this dead investment working for you as an asset is if you rent the car out or sign in up for an online car service. If you are running an events business, you can make your own car a rental bridal car.
Yes, investment becomes a term for spending on material things that feels worth it, but in the brains of economy, investment means “the purchase of goods that are not consumed today but are used in the future to create wealth.”
If you want to a maintenance for your homes and cars, you can pawn valuable home items and get a cash loan at PawnHero, the online pawnshop that offers high appraisal, low interest rate and is secure and convenient. You can also download the PawnHero app into your phones so you can pawn Anytime, anywhere.
Jhon Kenneth Delos Reyes
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