Category Archives: Investor

Construction investor should not restrict themselves to domestic market

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A wise investor is the one who believes in investing his money into multiple investment avenues and not just depend on a handful of instruments. As it correctly said, that one should not put all the apples in one basket because if one apple begins to rot, it will rot the entire basket of apples and therefore investors should always hunt for investment avenues that are less risky, little risky and some in high risk categories. Coming to the investors who invest in construction industries or projects, the rule remains the same. They should not stick to only domestic projects and should look out for opportunities outside.

Be it outside their city, or state and at times in foreign land as well. Investing in domestic projects will never allow them to understand the outer picture and the potential they have to make money by investing in projects outside the country. Big construction investors have all started domestically but as and when they saw themselves growing they opted to move to global markets and especially in countries where the economy is on the upsurge. This decision of theirs has given them more returns than they could have earned by being a domestic player.

Studying the economies of different country:-

A construction investor when thinks about investing in other country has to be very sure about the economy of that place. He has to do a thorough study about the government policies pertaining to construction projects. For instance, if the government of the country is interested to develop the rail and road infrastructure, it should give you a clear indication that you should invest your money in projects that relates to infrastructural development. Apparently, you also should be checking the health of the economy and if it has been doing well in the last few years. These sorts of research should be probably done by people who have studied and worked in such spheres so that they understand the ground situation well and can come up with better advices.

Government backing should be a must:-

It makes no sense in investing in a project that does not have government backing of that country. For instance, you are interested in the mining project happening in some African country and you find out that though it will give you high return but the risk associated with it is pretty high. Alternatively, the project should have political backing which if not present can cause enormous issues in the due phase of the work. In case, you do not see much political backing, irrespective of how profitable the project may sound, it is advisable that you stay out of it. However, analyzing the situation first and discussing it with experts is also recommended before you take the final call.

Think big to achieve more:-

It is imperative that you think big to achieve more in life. If you are content in investing in domestic projects throughout, then you may limit yourself to local projects and may not be able to cash-in from work happening in other states or countries which may be a big loss for you.

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Invest your money in construction projects globally

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When we think about investments, we come across all sorts of investment avenues that are liquid as well as non-liquid. However, not many consider investing in construction projects globally as a good investment option. There are strong reasons attached to it which is why people are usually deterred to invest in investment projects in a foreign land. One of the strongest reasons is that you do not have a direct control on the project and it may become difficult to monitor the progress of the work by being away from the jobsite.

Other than having a direct control, other reasons also include political turbulence, company getting dissolved. However, these reasons can’t be considered to be too big for one to deter investing globally and can always be worked out before you end up investing in one such project. There are of course few Do’s and Don’ts that needs to checked first before taking a decision of any major investment in foreign land.

Check the viability of the project:-

You can definitely invest in projects that sound to be viable. Alternatively, if the project has all proper sanctions from the different authorities of that country, there is probably no other reason why it may get blocked. Investing in such projects being in a distant place can still be a good option. However, you also have to check your benefit in it. You need to first measure your risk and the returns that you can expect from the work at its completion. It will be worthy to take such risks where you know that it will fetch good returns. There are many American investors that have invested chunks of money into various foreign projects. In this case they do not have to deploy their men for the work and if there is any hurdle that shows up during the tenure of the project that will be managed by the construction company who has undertaken the work.

Reputation of the builder matters a lot:-

When an investor has to invest his money in construction projects, he definitely checks the credentials of the construction company who has taken up the work. In the same way, while investing in a construction project outside US, you have to check the credentials first. Meet the representatives of their company, do some research on their previous projects. By that you will get to know how big the construction company is and if it is prudent to invest in projects constructed by them. The reputation of the construction company should speak louder than anything else and that should be the signal for you to go ahead with them.

Stay away from countries that are politically unstable:-

You investments in a foreign land will bear fruit only if you put your money in a country that is politically stable and there is no fear of the government getting overthrown by rival political powers or the army of that land. Investment of any kind in a politically unstable country is too risky and not even worthy to take the risk.