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Difference between Real Estate Investing and Speculating


9th July 2016 Facebook Twitter LinkedIn Google+ Real estate Investment



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Once you’ve got mentally graduated from the ranks of a jobholder, one who antecedent traded time for money, it becomes imperative that you simply understand the distinction between the ideas of speculating and investing. The variations are crucial, particularly when it involves the protection of your hard-earned investment money.

Speculate: To enter into dealing or venture in which the profits are theoretic or subject to chances i.e. to buy or sell with the hope of profiting through fluctuations in worth.

Speculating appears to be a natural human characteristic. Think about the raffle tickets people usually buy or the tickets being bought at sport betting centres. The prize offered for the winner typically was pretty enticing: a brand new automobile, some money, or maybe an international vacation. This began a mental attitude that speculating is a suitable approach of making money.

As we grow old, speculation becomes some way of life. On a small scale, who hasn’t participated in a soccer or academy awards pool at the office? By taking part, we hope to make a profit; however in real world, the result is totally out of our control.

Because people thus willingly speculate with their cash, most states have caught on and have lured Nigerians to spend money on games of probability. Not surprisingly, an enormous majority of individuals in our country pay money on lottery tickets almost every week hoping to get lucky one of this day.

Now, think about all these lotto and sport betting. They were established as a legitimate location for legalized speculation. Whether it is car racing, organized lotto, blackjack, or slot machines, if you wish to play, it’s pretty straightforward to find somebody in around willing to have your bet.

Let’s see how Investing differs.

Invest: To commit cash or capital in business to earn a monetary profit i.e. the outlay of cash for income or profit.

When we talk about finances, investing doesn’t come naturally. It looks as if we perceive investing when it comes to investing our time for education or investing our labours to try and do works round the house. investing our cash, however, must be learned.

Understanding the distinction between speculating and investing is straightforward once you analyze dictionary definitions. The key word within the definition of speculation is “hopes”. The key word within the definition of investing is “earn”. As you can see, these 2 ideas are at the opposite ends of the cash spectrum. once something relies on hope, it implies that somebody or one thing else is in control of the result. once it’s based on earning, it needs action on your half to realize success.

Your number-one goal is to know the way to invest your cash in real estate property so you’ll be able to produce something tangible for yourself. The game isn’t concerning speculating on buildings with nothing down or flipping foreclosures because to succeed in the game of speculating usually needs hope and luck. Here, we will show you the actions required to succeed in your dreams through investing. Actions like buying low priced properties and dealing them in sort of a business for a short re-sell time.

When it involves succeeding in real estate, investing, action, and earning are the keys to winning. Speculation, on the opposite hand, depends on luck and hope. As far as we are concerned, rolling the dice is best left for weekends in Lagos or other cities.

Idea: Start a savings bank account into which a share of your salary gets deposited automatically. In time, you’ll be able to painlessly accumulate some extra cash to assist pay for a deposit on your 1st investment in financial gain property.

 

 

 

 

Comments
  1. Owner Finance OKC said on 26th July 2017 8:56 am:

    Fantastic job here! Thanks for all the info, analysis and insights