You can make the most of your money. The trick is to constantly hunt for opportunities to create wealth.
Opportunities exist everywhere. All it takes is to think 'out of the box' and cash in on the right opportunities at the right time.
Here are some real life examples that show how a slightly different approach can go a long way in helping you find that jewel of an investment!
1. He bought real estate in the prime location of Mumbai!
South Mumbai is known for its exorbitant property prices. However, there are some pockets in South Mumbai which are available at one fifth to one tenth of the highest prices. I met someone who decided to buy a tiny piece of real estate (a 100 square feet room in an old dilapidated building for around Rs 5 lakh) in one such area, that was likely to be developed shortly.
The outcome: This building would get into re-development sooner or later. Whenever that happens, as per laws prevailing, he will be entitled to a room of minimum 100 square feet and up to a maximum of 250 square feet. All he has to do is wait patiently for a couple of years.
The advantage: As per the prevailing scenario, the new building would have a rate of Rs 10,000 per square feet. If he sells at that time, he stands to get about Rs 10 lakh to Rs 25 lakh, depending on the size of the room he gets. There are enough buyers in that area, so liquidity is not a problem. Even In the worst case, he will have a property that will appreciate gradually. Besides, he will also get rent from the builder if and when the building goes into reconstruction.
2. They invested in companies with a demerger plan
During the last two years, there were announcements of demerger of companies. Whenever a demerger takes place, free shares are issued to existing shareholders of the demerged entities.
Investors holding shares of such companies made twice as much from their existing investment, in a short span of time (around six months).
Some examples are TV18 and Network 18, Indiabulls and more famously, the Reliance demerger. Even in today’s market conditions, you would get returns that are equal to at least five times your investment if you had invested in Reliance, prior to the demerger.
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3. Buying a (almost) new car at the price of a second hand one
There is a place in Gujarat where there is a concentration of houses belonging to NRIs. When they come to India, many of them buy cars. They use it for some time and then they return back to their homes abroad. As a result, there is a huge second hand car market in this area. It is operated by a group of people who sell these cars, which are about a year old. So, you can get almost a new car at a very attractive price.
4. They buy good furniture at throwaway prices
Likewise, many people buy home furnishing equipment from places close to ship breaking yards. Huge bargains and high class quality wood furniture, something you would spend a fortune to make yourself.
5. He makes money from art
I have a friend who buys small articles of art and craft, paintings etc. at throwaway prices from the interiors of India and displays them for sale in his pastry shop in London. He makes almost four times his investment by doing this.
They say if opportunity doesn't knock, build a door! In other words, we've got to be on the 'look-out' constantly. The pay-offs can be very handsome and you can keep the risk level low or highly under control.
This is being done by real people around us. You can do it too!
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