Investing in stocks and forex isn’t for everyone. Some investors prefer to put their money into something tangible that they can reach out and touch. In periods of economic uncertainty, investing in the these tangible assets can sometimes be a more secure option. Here are just a few different physical investments to consider.
Real estate is one of the most popular physical investments. This includes residential property, commercial property and land. With real estate you have lots of options as to how you want to invest – you can get involved in property flipping, let out the property to tenants or turn it into a vacation rental. There are lots of places online to search for investment property for sale, although you may be lucky enough to inherit property.
It’s important to choose the right type of property for your investment – if you’re renting out to tenants, you don’t want a property with too much maintenance. There are experts that you can hire to help you such as letting agencies and property developers.
Precious metals like gold and silver are also great tangible investments. These can be bought in the form of a bullion or in the form of jewellery or antiques. By holding on them and letting their value increase, you can then make a small profit. There are lots of dealers online from whom you can buy gold and silver.
It’s also possible to invest in wine. A good harvest can often lead to exceptional wine – any bottles of wine from this harvest will then grow in value as the years go on. Some people buy entire crates of wine to maximise the potential returns. You’re best always doing your research by finding wines that critics recommend.
A lot of people also invest in artwork. An advantage of artwork is that you can hang it on your wall and get personal use out of it before selling it on for a profit. Pieces of artwork from famous artists are the most likely to rise in value, however you may need to save up quite a bit just to afford these pieces of art in the first place.
You can also make money by investing in collectibles. This could be anything from trading cards to old coins. Collectibles tend to attract loyal and knowledgeable fans – it helps to be a fellow nerd so that you know what to look for.
There may be conventions set up for buying and selling collectibles such as coin shows. Some people are lucky enough to find collectibles in their attic gathering dust – these could be childhood toys or inherited possessions that have grown in value over the years.
Property Investment Extra Guide…
Property investment is widely considered to be one of the best ways to secure your finances in the long-term. However, property investment is also somewhat opaque; while most of us are familiar with the concept of flipping our own home, anything beyond this seems confusing and overwhelming.
Below, we’ve sought to straighten out some of the confusion, and answer the most common questions prospective property investors entering the marketplace for the first time tend to have…
How is property investment different to house flipping?
Well, it doesn’t have to be – house flipping is a viable method of investing in property if you have the time and resources to continually improve houses in order to then sell on at a profit. However, property investment isn’t just house flipping; you can just buy a property, or shares in a property, and have very little to do with the actual management of the property itself. In many ways, property investment can be tailored to suit your specific needs, circumstances, and budget; such a venture is far more flexible than many people are led to believe.
Does property investment deliver a continual source of income?
Yes – in fact, it should produce a monthly income. It’s easy to see property investment as a kind of static investment: you buy a property, or a share in a property, and then it sits, doing nothing, there to be called on in the future. However, most property investments actually deliver an immediate return via leasing; you invest in a property that is then rented by a domestic family or a commercial business, with the rent payments providing a regular source of income.
Does investing in property mean you have to buy a property outright?
Absolutely not! A common misconception is that property investment involves purchasing the property without a mortgage – while doing so would be preferable, it’s by no means necessary. Most people who invest in property will obtain a mortgage, while others will choose only to buy part of a property, so you definitely don’t need to have $200,000 in cash sitting around waiting to be invested!
The best thing i could say is, invest in what you feel comfortable with and upscale from there. If you don’t have much funds… Try the stock market, try a ETF investment or a Reit (Real Estate investment Trust). Always seek professional advise before investing in the stock market.
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