第一次习作发表 TWE185 - 请多指教！！

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You have enough money to purchase either a house or a business. Which would you choose to buy? Give specific reasons to explain your choice.

Buying a house or a business when you have enough money? I think the answer depends on the purpose of spending the money. If you want to make an easier living through the investment, buying a house would be a wise choice. However, for those who want to get the most out of the investment, I would suggest them to buy a business.

The key advantage for buying a house is that housing is generally considered a conservative way of investment, as long as you have chosen the right location and right timing of purchase. The rent can generate income almost immediately after purchase, and can bring you stable cash flow as you can use the rental fee to cover mortgage payment. What is more, if you bought a house with the potential to grow in value, you can expect to earn quite a sum from selling it after a while. An extreme example is that the house pricing in Shanghai rose by 4 times from 2003 to 2007. Many people took the chance to become billionaires. – How amazing!

A second merit for investing on housing is that it requires less effort from the landlord to manage. The real estate management service is already mature so that you can easily find someone who takes care of everything related to the house. After you settled a good partner on housing management, all you have to do is to collect the paycheck from tenants every month.

On the other hand, investing a business is a game of “high risk and high return”. You could easily lose all your money, but there is also fair chance that your asset blast in a successful deal. The best example in recent years is the investment for Google. The key to be successful in investing a business is that you should choose the industry you are familiar with, choose the partner you have confident in, and put in as much effort as possible. Still one other thing to remember is that it always takes a while for a business to become profitable, so patience and persistence are also essential to win the game.

In sum, when it comes to investment, there is no universal answer for everyone. It’s a judgment call after you carefully evaluate your own situation, and figure out what you really want from the investment.

[此贴子已经被作者于2008-10-27 14:46:02编辑过]