One million crowns as a one-time investment

A million as a one-time investment is a good enough reason to count first and then invest.

Let’s face it. Even if you own one million crowns, it is not always appropriate to invest it once. Your financial background is important. If you are a multimillionaire and that million is just one of many, you can safely invest it all at once. However, if this amount represents the vast majority of your savings, then it is advisable to divide the entire amount into several smaller ones and gradually turn them into an investment.

There are several options where you can invest a million crowns. Let’s start with a few of them, which we will analyze at the same time.

Real estate and real estate

A million crowns is an ideal amount for buying real estate. It doesn’t matter if you spend this lowest possible seven-digit number on a single reality or buy several. For a million crowns you can buy one, two or three apartments. Or none at all. This is the case if you want to buy real estate in Prague or in regional cities. The same goes for land. For a million crowns you can buy a modest plot of land in the capital or ten hectares of agricultural land somewhere in the Ĺ umava or Beskydy Mountains.

In addition to the price, the purpose of purchasing real estate is crucial. If you are going to farm, then it will be advisable to buy land. If you want to live, then an apartment or a family house. You can also invest in land and wait to see if its value does not increase over time. The same applies to apartments, where in addition to the difference between the purchase and sale price, you can still relatively well get money from renting. However, renting land and the resulting rent is not a bad idea.

One-time and ongoing investment

The first thing on mind is to invest the entire amount in stocks. If you spend another million crowns deposited on deposit products, this option is feasible. An even better alternative is to buy the intended assets gradually. For example, over a period of several months and invest a smaller amount of money. With this simple averaging, you avoid entering the capital market at the most inopportune moment.

Money loan

If you have someone in your area who needs to borrow money, you can invest money this way as well. In contrast to the above examples, it is necessary to have a good contract. A million is a large enough amount for best friends to become enemies or relatives to unravel.

With investing, borrowing money has several similar symptoms. You entrust your money to someone who promises to repay it, but you never know when it will be. Despite the agreement of both parties, there may be reasons on the part of the debtor that may lead to late payment. Alternatively, another risk will be for your dear half to urge your mother to lower the interest rate or forgive part of the principal. These and similar contingencies await you if you lend funds to someone close to you.