It is important that you consider and choose investment options that will help you maximize returns in a smart and safe way.

Many people who want to prosper financially, grow their savings, provide for their loved ones, have enough money to spend on the things that matter to them, and eventually achieve financial freedom will always turn to investors to help make that dream a reality.

This is because while selling is a way to make money, investing is the only known way to grow it. If you don’t get to put your saved income into an effective investment vehicle, you will be stuck and all your financial dreams and aspirations will only remain pipe dreams that will never materialize.

Finding great investment options in Australia should not be rocket science. It simply means finding great assets and opportunities in the country that you can safely put your money into for future returns.

What every wise investor should do is to look for the best and most efficient vehicle that will help him to achieve maximum returns in the shortest time and safest way possible.

The idea investment vehicle is important because the nature of the investment vehicle that you choose will determine how fast you will arrive at your destination whatever that may be for you.

It will also take into account your risk appetitive, investment motives, investment goals, and objectives as different vehicles are designed for different purposes and people.

Is Australia good for investment?

Why you should invest in Australia is because it is an attractive investment destination due to its low risk and stable nature.

Australia is a stable and low-risk destination for investment, thanks to our resilient economy, dynamic industries, and strong trade ties with the world. We offer a business-friendly environment, a smart, enterprising workforce, and a lifestyle that’s the envy of the world.

The Australian economy is dynamic, resilient with innovative talents and industry which makes it one of the best investment destinations in the world. The country is the fastest place in the world to start a business with regulatory procedures taking just two days compared to the OECD average of 15 days according to the world bank report.

The country also ranks low on restrictions with great ethical practice which helps to preserve stakeholders’ value due to its strong ethical practices.

Australia ranks first in the Asia Pacific for labor, agricultural and industrial productivity per person employed and also is home to one of the most multilingual workforces in the Asia-Pacific region, with citizens from over 200 countries. Over 10% of Australia’s population of 20 million speak a language other than English at home.

The country also ranks high on political stability. Australia has been noted as the country with the lowest risk of political instability in the region and 4th lowest in the world.

Australia has a good credit system and robust financial services. The country has one of the largest investment fund asset pools in the world. the stock market alone is the largest in Asia ex-Japan and ranks 8th in the world with the currency being one of the most traded in the world.

All these and more are some of the interesting features that make Austria a great investment option for anyone to consider.

Can foreigners invest in Australia?

Foreign investment occurs when an individual, business, or investment office from outside Australia decides to put money behind Australian-owned assets or businesses.

Foreigners can invest in Australia as the country welcomes foreign investment as those supplement domestic savings and help to boost production, employment, and national income.

There are two main ways in which foreign residents or companies can invest funds in the Australian economy:

Portfolio investment has to do with the purchase of financial securities in the open market or any other instrument which doesn’t give the foreigner direct control over the instrument or asset in question.

The other way is through Foreign direct investment (FDI).

FDI facilities enable a foreigner to acquire a 10% or more stake in an Australian business or outrightly start one in the country which gives the foreigner control over such asset.

This is most evident in various joint venture partnerships with foreign-owned multinationals that exist in the country.

If you’re a foreign person who is planning to invest in Australian residential real estate, agricultural land, or water entitlements, you may need to register and apply to the Foreign Investment Review Board (FIRB).

This will help you know if you are considered a foreign person which depends on many factors such as your residence, Investment type, and ownership, visa status, net worth

Safe and Risky investment Options To Consider In Australia

1. Cash Investments

Though it varies, Every investment comes with some elements of risk to it.

When it comes to less risky investments that one can make in Australia, cash falls into that category.

When investing in form of fixed or midterm deposits, cash savings in Australia, the returns will obviously be lower than other assets classes, but it is the most liquid and safest form of investment you can make in Australia.

This will be suitable for you if you are risk-averse, not ready to stake for the long term, and need your asset to be easily liquidated.

2.Fixed-Income Investments

 

These are investment instruments with fixed tenure with regular predefined interest.

 

A good example of fixed interest investment is Bond. This can be issued by private Australian companies or the Australian government, otherwise, it becomes a riskier asset.

 

If you are choosing this as one of your investment options, you need to consider the fact that this asset class might also not perform well in the face of high inflation as the interest paid doesn’t take the inflationary figure into account.

3. Gold

Gold is one of the solid investment options that savvy investors use in hedging against inflation and excess printing of money by the government.

To invest in Gold, you don’t necessarily need to possess it physically, you can buy Gold derivatives, Gold related Stocks, Gold receipts, Gold ETFs, Gold projects, and even Gold mutual funds.

The value of Gold is determined by the forces of demand and supply which help to fix the price and this makes it a volatile asset. 

4. Real estate

 You can choose real Estate as one of the interesting investment options you can make in Australia.

Investing in real estate can be by owning rental properties which generate rental income for you.

You can also buy a Real Estate Investment trust which is a type of property fund such as ASX in the open market.

REITs are a less risky cost-effective and more diversified way for an investor to get into the real estate market in Australia.

It helps you share risk while maximizing returns as your money is pooled with that of other investors and invested in a large range of property-related assets. 

 5. Listed investment companies (LICs)

LICs are fund companies that are incorporated and listed in the stock market.

Most LICs have managers who use their expertise to choose investment for the company on behalf of the investors.

LICs are ‘closed-ended’ investment companies that generally invest in other companies. And because of its nature, there is usually a set number of shares that are available and doesn’t change with the number of participating investors.

This means that the manager is more concerned with managing the available investment instead of being distracted by the need to raise new money.

6. Managed funds

Managed fund which is s also known as managed portfolio is an investment vehicle where money is pooled with other investors and invested on your behalf by a fund manager.

A managed portfolio can be focused or diversified. The focused managed fund concentrates on a particular asset. A good example is a fund that only invests in shares of Australian companies.

A diversified managed fund on the other hand helps investors to invest in a mixture of assets to help retail investors access investments and a level of diversification that ordinarily wouldn’t have been possible.

The amount of money you invest is equal to a set number of units you get allocated in the fund, and any growth or earnings are then divided among all investors depending on how many units each investor owns. 

7. P2P LENDING

This is one of those new inventions in finance powered by digital currency adoption. P2p operates in such a way that you can bypass the traditional lenders by connecting investors with companies or people looking for a loan.

This means that as an investor, you can use P2P platforms to lend money to verified individuals and companies who will pay you regular agreed interest and the platform will help you recover your capital at the expiration of the loan time.

P2p transactions are usually carried out through online intermediaries which help facilitate the transaction.

Through the platform, the lender will be able to see what loan they would like to fund, and, the borrower must pay the loan back over time with interest.

 HOW TO START INVESTING IN AUSTRALIA

Set and be clear on your investment goals.

Before you start thinking of which of the investment options you will put your money in, you must first create an investment goal.  This helps you clarify perspective and guide your asset choices and vehicle type

Create your investment plan-A plan is a framework that will help you to seamlessly execute your investment goal. It is very important that you are clear on your plan before you start your investment journey.

• Do your research – Research everything from the asset type to the investment platform that you want to use. Research is what keeps you safe and helps you to make optimum investment choices and decisions.

• Know your risk profile – different investment products carry different investment risks. But more importantly, there is only how much risk you as an individual can tolerate per time. You need to be sure of this and in all make sure that any risk you are taking has a huge upside with a downside that is not dangerous.

• Speak to an Adviser – Talk to a fee-only adviser. This will help you to get an unbiased opinion about your investment choices and decisions.

And one quick way you might even get free advice is to join Investment networks. This is very important if you are considering the Australian startup space.