Purchasing Appreciating Items

Discussion in Personal Finance started by remnant • Aug 22, 2016.

  1. remnant

    remnantActive Member

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    Some items are always following the path of inflation. They get more expensive as time passes. Sometimes, they appreciate quite quickly and it makes alot of sense to purchase them in bulk before further increases in price take place. Its a form of hoarding only that its being done by the customer to save money in advance.
     
  2. xTinx

    xTinxWell-Known Member

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    Among the things that appreciate are land (not necessarily the house built on top of it) and jewelry. Real estate in most cases is a solid asset so its value grows over time. For you to make the most out of it, you should start investing as early as today, while its value is still low. Try to scout properties in suburban areas, they're relatively cheaper.
     
  3. Denis Hard

    Denis HardWell-Known Member

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    Buy cheap land that's far away from a town. It will be very cheap. Now plant some trees on that land and patiently wait a decade or so then sell the timber. The returns would pretty decent.

    Precious metals like gold and silver might also be a good investment. Their value is likely to appreciate over time.
     
  4. Jamille

    JamilleActive Member

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    That is so true @Denis Hard@Denis Hard. My father planted mahogany trees in the late 80's on a remote 2 hectare vacant land he purchased at a very cheap price from a couple who needed the money in a rush. He allowed it to grow on its own and waited for 15 years before he cut them down and sold them for a huge profit. In the last decade, however, the government has started to enforce more stringent laws to curb forest denudation and the indiscriminate cutting down of trees as these had contributed to floods and landslide in some areas.

    When we inherited the land a year ago, our siblings and I decided to plant rubber trees on it. Rubber is in high demand locally and internationally. Moreover, you can start harvesting as early as five years. The yield increases as the tree ages and you can expect decent income up until it reaches 15 years at which time you can sell it as timber. At 5 years, a tree can produce $250 worth of rubber per month. Take note that it is a hardy tree that doesn't require much care.

     
  5. Alexandoy

    AlexandoyWell-Known Member

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    Land is the first that comes to mind when it comes to items that appreciate in value. That is why we had to scrimp and save money just to be able to afford the downpayment of this house that we purchased via a bank loan. My wife buys some jewelry not only for showing off during parties but also as an investment. I agree that jewelry increases in value as time pass by but I prefer gold over other gems because gold is the standard when it comes to values.
     
  6. Nakitakona

    NakitakonaActive Member

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    In my simple knowledge about trade and marketing, it is the supplier or producer that hoards their produce or items for sale with purpose of increasing their prices due to increase in demand and less in produce for they're hoarded for that purpose. Customer never hoards the products. He may buy in bulk due to the possible running out of supply. That is what we call in business term as panic buying.
     
  7. Jessika

    JessikaActive Member

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    Land is a good buy that appreciates in value. There are also other collectibles, like wine clubs where members get a proportion of the wine to drink, and a proportion is stored as investment, but those tend to depend on the market.

    Jewellery isn't always so good because of the high initial markup, but gold metal by weight, particularly sovereigns and coinage, is a great store of value and its value goes up whenever currency or the economy is uncertain.