What can we think, seeing such a title?

There are many dilemmas when we go to discuss the so-called investments. But what is really going on? What applies; What would be the ideal choice?

Investment is the commitment of funds for a period of time, which is expected to bring additional funds to the investor. In technical terms, an investment is a sequence of Net Cash Flows.

We live in an age where investing somewhere is a form of everyday life. It has begun to enter our lives more and more often and is now also considered a branch of the working environment. It is no coincidence that abroad, but also to a lesser extent in Greece, there are specialized companies that do a full analysis and ideation on investments. Taking a first look at social media (tik-tok, Instagram, Facebook) 90% of articles and updates are about real estate, new cars and cryptocurrencies. We will deal with the first two.

2022 is one of the years that sees an increase in demand for real estate as well as cars. But how are these two directly related to investment? The answer is simple! Do you want to invest in the future or present a greater present? The difference between these two is also called assets or liabilities (English: Assets and liabilities).

So the main differences between these two are as follows:

Assets provide future benefit to you or your business (investment), while liabilities will simply be personal or business obligations.

Assets are easier to depreciate, while liabilities are not.

Assets can at any time have an increase in value and benefit the individual or business with new credits, while on the other hand we have charges.

The same happens when these two decrease.

Assets can be classified into many types, tangible, intangible, current, non-current, virtual assets, etc., while liabilities can be classified into current and long-term.

Assets bring in cash over the years, while liabilities bring cash out.

Assets equal liabilities and equal capital, while liabilities equal liabilities without any additional capital.

Let's see what happens with cars, putting electric cars first on the list of options. These are increasingly integrated into the market and are the future of the automotive industry.

So looking at a good new electric car we think it's a good long term investment...for now.

It is electric, it helps you to make your trips easily and quickly, it has many comforts and you feel "cool". But what happens when suddenly all the companies launch new electric models? The answer is easy… it loses its high value. But why;

What is really going on?

Buying a car is said to lose 5% of its value just by turning the ignition and then every year it loses 10%. On the other hand, seeing the 2nd version creates quality competition and now the differences will be minimal because there will be inflation.

A similar situation prevails with shares. Except stocks already have inflation and prices fluctuate every second. Stock = risk. To know how to properly invest in a stock and reduce the risk to 50% you need to invest a lot of time or even money in programming products to test it and know that you have a stability that will bring you even a reasonable income .

But how is this NOT the case with real estate?

The answer is easy. The prices of the same property types are modified according to their location. Many of the other factors such as condition or age or floor etc. contribute much less to the fluctuation of a property's price. You need a little time and everything comes out with simple math. Performance, revenue, price differentiation, etc.

It's simple, if you think about it. People have learned to invest in things they can see, measure and process. Shares, like cryptocurrencies, we don't know exactly what they are, how they work clearly, we don't see them, because quite simply they are something intangible. For example if you want to start an investment and you need a loan, a bank will provide you with this loan only when you go to buy a property or a car. No bank ever gave a loan to someone to buy stock, even the bank's own stock. Because they themselves know that after this they cannot take it back, they need something tangible.

So let's see an example between these 2 (property and car):