A lot of people wish to use other ways to earn money, but they are stuck in the little knowledge that they have about investments. Since you are here, you will not be one of those people. Thanks to the internet, much information has never been more available than today. Lessons about investments can be found through this network, which anyone can access for free. They can even learn what many people don’t know for a certain amount of money. In this article, you will get to know a part of these important lessons, which are the alternative investments that will help you build your wealth.
Angel investing
Some alternative investment management companies invite their clients to invest in businesses that are still in their early stages. Once you invest this way, you will be an angel investor. For this investment, you’ll get equity or a percentage of the business. You’ll make your money once you sell your stake, which can take a few years. As an investment, it can be risky, but the potential return can make it worth it. Make sure you understand the business and the market to increase your chances of success.
Mineral rights
Alternative investment management companies will also advise you to invest in mineral rights if it is an option. If there are minerals underneath your property, you can sell the rights to extract those minerals to a company. Minerals, in this case, is a general term that refers to any precious resource that can be extracted from the ground, including oil, coal, and diamonds, among others. Make sure you take the time to do your research. As you can imagine, resource extraction is a very competitive market.
A buy-to-let property
This is one of the most used alternative property investments UK wide. However, before you can even consider a buy-to-let property, you need to have at least 25 per cent of the value of the property to use as a deposit for the buy-to-let mortgage, plus a pot of money to cover any refurbishment needed, legal fees, and emergencies (such as unexpected repairs or so-called ‘void’ periods when you are unable to find a tenant). If you’ve cleared that hurdle, the next problem is choosing the property. This is all-important because, at the very least, you want a property you can rent out easily for enough money to cover the mortgage payments
Stamps
As long as there are stamp collectors, rare stamps will have value. The most valuable can fetch six- or even seven-figure sums. Some companies dominate the market for collectable stamps and offer private investors ready-made portfolios of rare stamps starting at about £10,000. These companies claim that the value of rare stamps keeps on going up. However, investors should beware. If you wish to use this alternative investment, make it a habit to find the right source of information about the value of stamps.
Land banking
Effective alternative property investments UK wide also include land banking. Land banking companies take a piece of land, parcel it up and sell it off to investors. The hope is that once the land is earmarked for development, it will soar in value. However, there is often no development. Investors are left holding a useless piece of land either in the UK or overseas. Therefore, some land banking schemes have been shut down in the past few years.
Start your own business
You can use your money to invest in your own business, which has the potential to produce the highest returns of all your investment choices. Take note, though, that just like other alternative investments, a business can fail. It may cost you a lot of money and even sorrow. However, your businesses can produce a steady income and grow over time. Some businesses have very low start-up and ongoing costs. These include virtual or online businesses, like teaching, consulting, coaching, and IT support. One way to approach this is only to put part of your money into a business and invest the rest elsewhere. This approach can save you some sleepless nights. Another approach is to create a part-time business, something you can do on evenings and weekends. That way, you don’t have to give up the security of your regular job, and you will be making extra money.
Start-ups and private companies
If you don’t want to own your own business, you may want to consider owning part of someone else’s. Start-up companies need money to finance the new business. These firms offer shares through equity crowdfunding websites. Suppose you invest in a company over an equity crowdfunding site. In that case, you own part of it and will be rewarded if the company succeeds. The risk is that if the company fails, you lose part or all your money.
Indeed, there are a lot of ways to make your money grow. In this article, you have learned a few of these effective ways. At this point, though, you may have thought of several obstacles that may hinder you from doing it. However, you should understand that it’s just normal. These obstacles that you are thinking about can be addressed. You have to learn more about the available alternative investments in the market. Just like what many people say: Sky is the limit. So, get yourself up and start learning about these investments.