When you invest your money, few things are better than seeing a constant return on your investment while also building wealth. There are several types of investments that can both mature and earn a steady income for you. Albeit there are many investment types that have proven they can generate a steady income, the most common examples are real estate, shipping containers, and short term loans. The best way to identify these appealing investment options is to begin with some research.
The most appealing aspect of each of the 3 investment types mentioned above, is that they have demonstrated over the years that they can provide a good investment return, while at the same time earning an income for investors. Here is my brief breakdown of each offering:
In the instance of real estate, you can earn income from a tenant while also paying down your mortgage – which in turn is creating a higher net worth and value in the house. When you sell the house, you could have the entire asset paid for by someone else while you are also the sole beneficiary of the sold asset. Many investors dabble in some kind of real estate and it is often considered to be one of the safest investment types out there.
Although not as commonly known in North America or Europe, investing in containers is another way to generate a monthly income. In essence, investors purchase a container and hire a container leasing company to lease it out to international shipping lines. Shipping companies pay a rental fee and investors profit while the asset’s value is paid down.
Short-terms loans can also be a good income producing investment, although they tend to be riskier than the first two listed above. In the case of short term loans, you can make a weekly, or monthly profit form the interest and have the full loan paid back within weeks or months. This is much more common in emerging markets where cash flow is often not as readily available, as in other global markets.
It would seem as though there is a growing trend of investors seeking investment opportunities that will provide a steady income, while delivering long-term performance. The days of making investments and then waiting two decades for a pay-out, are very quickly fading. Nowadays, more and more investment-seekers would like to see a monthly income and count their profits sooner than later. As such, an increasing number are choosing their investments accordingly.
Being an investor today can be both scary and fun at the same time. With the current market conditions and volatile stock markets, investors are always looking for appealing investment options such as real estate, global trade, green energy or natural resources. Often times the most interesting investment alternatives are right in front of you. In this article I intend to outline some of my very own investment tips, to (hopefully) help you make better choices when investing.
- Find an Industry That is Certain to Grow: There are only a few industries out there that are going to grow as the world markets increase their inter-connectivity. As new markets emerge and new technologies (such as the internet) allow for closer connectivity of people, the physical space between us always remains the same. One of the best means of investing in the global economy is by making an investment in global trade itself. There simply is no way around it. As the world looks for goods coming from overseas markets, THEY MUST be transported to the source by way of container ship. As far we know, there is no plan to build a bridge to connect Europe to North America or Asia to the Americas. That said, shipping is the single most efficient way of transporting goods from one continent to the other. AND, as global trade increases, so does the need for shipping resources like ships and cargo containers.
- Find an Investment Vehicle That Pays Dividends: Many investments are long-term holds that pay out a pre-set percentage on your capital. While this is a sound investment practice, it does not always guarantee the highest returns. I have found that investing in hard assets, such as income properties and shipping containers, can bring monthly returns on your investments.
- Find a Broker That Wants to Work For You: In the shipping container investment industry for example, I use a maritime asset management company that handles the daily management of where and when the container is used. My role as a container investor is to simply to collect my payments. In the same regard, if you invest in income properties, you may want to have a property management company play a similar role. Do your research and look for companies that showcase real client testimonials and that answer their phones when you call.
- Emerging Markets Have High Growth Potential: Markets such as East Asia (China, India, Hong Kong, The Philippines) and Latin America (Brazil, Chile) all have interesting investing opportunities that are unique to their economies. Many have alternative investment options in natural resources, global trade growth, and green energy sectors.
If you are patient and thorough, I am certain you will discover (more than) a handful of appealing investment options. When you do, I hope that these investment tips will help you pick the best opportunities and make profitable investing decisions.