Real Estate Finance and Investment - Essay Example

Depending on the way you invest in the bonds, an individual is assured of good returns. Thus why they have steady features for portfolio.

Bonds also have better planning. This is due to the higher stability in their returns as opposed to real estate. It is easier for a person to plan for his or her future. Having the knowledge that the amount you invested in bonds will pay you the interest it has earned in a year enables a person to set a target on the savings. Also, he or she will be in a better position to estimate his or her return on investment.

A house may is not an investment, this is because houses are not an efficient way of investing. They usually cost more to buy and manage.  Though it may seem as if it will have more returns in the future this does not hold because of the cost that was incurred in purchasing it, renovating, insuring, repairing, and paying taxes on it. All these costs will not make the house appreciate in price in reality. Even if I was to sell the house in the future the profit I will earn is not a true one but it will just be a large refund of the cost incurred.

I do not view jewelry as an investment because not all the time appreciates in value. Many jewels although they seem to be pretty may not be having any significant value in them. Most of the jewels are only covered with precious materials and the underneath material might be of less value. Others are not made of pure materials thus making them depreciate in value.

Also, other factors that determine the value of the jewelry are:  when you purchase jewelry from a trader, its markup is rather heavy. Also, the size of the jewelry will determine how it is going to appreciate. A large size will appreciate more than a small one. A high-quality jewel will have more value as compared to a low-quality one. Lastly, the jewel will appreciate depending on its history and uniqueness.  The one which was made by a famous designer is likely to have more value. The rare jewel is the most likely to increase in its value.