Most of us are pretty aware of the mainstream ways to invest. Number one being of course the stock market. The stock market is a great source of income, but it also comes with an assumed risk.
You can do very well on the trading floor, but you can also get smashed and lose a whole heap of your capital. Below we will look at simple investments that can be made without resorting to the stock market, and will have you asking yourself is this the next investment strategy for me?
Property is a very tangible investment. Even if the property market crashes it will still yield a return of some sort, and worse case scenario if everything goes belly up you can even move in. The quickest way to make money from property is to renovate. This will involve you buying up a property, adding some value to it, and then remarketing it. The type of property you buy and the state it is in when you purchase it will dictate to some part how much it will cost to sort it out to a good standard and how long it will take. The biggest returns are to be made on buildings that need a lot of TLC as they can be purchased at auction for next to nothing and then modernised for a large return. The cheapest way to renovate your property is to get hands-on wherever possible. Simple things like painting, decorating and gardening are all within everyone’s grasp and require little training and hard work. Just be cautious not to do a poor job that may affect your bottom line. If you are not a hands on person just take a hit on your profits and get professionals in, they will save you time and money in the long run. The other way to make money from property is to rent it out, this one is a lot more slow but has the potential to earn more money over the years if you are patient. You can even increase your property portfolio and have more income coming in.
In recent years there has been a surge in peer to peer (p2p) lending. At its core it is a way for you to repurpose your capital and loan it out to other people without the risk of just loaning a sum of cash to your friend or neighbour. Various sites exist to make p2p a breeze. You invest your cash with the site, they then break up your loan into smaller chunks and loan that too many recipients. This means that if you have ten loans for example and one goes under you would only lose a tenth of your investment. The others would continue to pay back your original loan and interest on that sum. It really is a great way to lend money to another party without too much risk. It has a feeling of good karma about it as you are lending to another individual who is making something of themselves. They in turn are then not at the mercy of the high-interest rates of typical banks.