Whilst we all want to find that one investment that not only doubles our money year on year, we also want to do so with no risk involved.
Unfortunately, this is akin to winning the lottery and so, within the bounds of sensible investing, what exactly is a good return on investment?
To answer this question, we must assume that at a very basic level, we all want at least two things:
1) our capital investment to keep its value and
2) for any growth to outstrip inflation at a minimum.
The latter point is key to maintaining the same purchasing power in the future of any lump sums in the present.
It is from these two points, however, that investment requirements diverge and individuals will start to view return levels differently. Whilst all investors seek to make investments that outperform inflation by as much as possible, they have to do so within the limitations set by their own personal risk profile.
So, as requirements vary from investor to investor, to answer what is a good return on investment, it is necessary to look at one’s own individual needs. It is helpful first to ask – why are you investing? What do you want from your investments? It is only from that stance, that one can say a 5% yield with little risk attached to it is a good return which is better than an investment that claims it can produce a 20% return that is far far riskier.
At Hanover Merchant Capital, we seek to circumnavigate the unknowns of investing by minimising risk. We aim to be as transparent and realistic as possible in regards to the returns that can be made through our carefully selected property developments and artesian water projects.
Importantly, we offer investments with a buy back structure so investors can be confident in recouping their initial financial outlay.
Contact us today to start enjoying free access to exclusive international property investment and water trading opportunities where a team manager will be assigned to you and you’ll immediately be sent information on our latest developments.