There are three major aspects to keep in mind when thinking about making a big investment. Because when it comes to money and numbers in general, you’re either winning or losing, there’s no middle ground in business.

1)Capital gains.

One thing that is widely expected of a big investment and that is big increase in value overtime. but not all big investments, nor all small investments really do increase in value overtime, and if something is not increasing in value it’s decreasing in value. Absolutely nothing worth much ever remains as is.

If you invest in real-estate for example, investing in a big victorian house in the suburbs is not as profitable as investing in an appartement building in downtown city. The later is probably going to increase in value over a relatively short period of time and definitely requires little or no renovation at all during that period of time. On the other hand, a victorian house comes with the necessity for renovations.

2)Passive rental income.

The first thing investors look at when considering a big investment in real-estate is profitability, and A big part of it is passive income. And if we look at the example already established, it is pretty obvious that an appartement building downtown city is more likely to make huge profit in passive rental income compared to a victorian house in the suburbs. And that is due to the simple matter of demand vs. offer.

3)Tax.

All buildings big or small are taxed, and the bigger the property the higher the tax, where in most cases big building cost a lot more to own than the the real monetary value of the building itself just because it’s big. And the bigger the building the more it’s worth and consequently the higher the tax on it. But for what end ?. Contrarily, a small appartement building downtown city is generally cheaper, so the tax is most likely diffusible in rent where tax intermingles with the monthly rental bills.

In conclusion, it’s always a good investment to invest in immovable property. But if you’re investing anyway and you wanna make big money, you might as well invest in real-estate that will increase in value, provide passive rental income and cut down tax.