Are you ready and eager to start investing but don’t know where to start? For many, investing seems complicated and risky but it doesn’t have to be if you have the right plan in place.


Before getting started with investing

Before you get started, it is important to look at your financial position to see whether investing is the right move for you. If you have high-interest personal loans or credit cards, it may be worthwhile working to pay these off before you start investing. The decision to invest will depend on your unique circumstances and what other outgoings you have considered in the short and long term.

You will also need to think about how much money and time you are willing to invest. When you are determining the right amount to invest, remember to keep some aside in case of a financial emergency. With some investment options, withdrawing your funds quickly isn’t always an option so you make sure you aren’t putting absolutely everything into risky investments.

Time is often a forgotten factor when thinking about investing. If you are eager to purchase an investment property for example, you will not only need to know enough about the property market to make a wise investment, but you will also have the ongoing maintenance and communication with tenants.

So which type of investment is right for you?

Types of investments 

Investing in the share market

When you purchase a single share, you are essentially purchasing a single unit of ownership within a company. Shares are usually purchased and sold on the stock exchange, with the value of shares changing over time. Prices can be volatile from day to day, therefore, this strategy often suits long-term investors, who are willing to play the long game to withstand the short-term ups and downs.

The goal is for the price of your shares to increase over time, and then you’re able to sell them at a higher price. However, there is always a risk that the value of your shares will fall. Some share purchases are riskier than others but your strategy should depend on your stage of life and your current financial circumstances.

Property investments

Getting into the property market has a similar goal, to sell at a higher price compared to the purchase price. 

Investing in property generally isn’t a short-term investment as prices need time to increase. Although there is a general trend upward in property prices, there is no guarantee that you will sell at a higher price. 

Selling property is not a quick process and often you need to wait for the right time. It may therefore not be a smart choice for those who could require a quick sale to access their funds in the future.

Term Investments

Investing in a Term Investment is an easy low-risk strategy to grow your savings. Although the potential returns aren’t as high as the share market or property market, it is a safe option that requires minimal effort.

When you open a Term Investment, you will need to determine how much you would like to invest and over what period. With APS Term Investments, you can invest for 6, 12 or 24 months with the opportunity to earn 5.00% p.a for the latter two terms. Your money is essentially locked away for that period.

Interest is paid monthly to generate regular income, or it can be added to the principal each month. If you have significant savings sitting in an everyday bank account, it is worthwhile considering a Term Investment to help your money grow faster!

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Get in touch with the APS team to learn more about Term Investments.