Alternative Investment Opportunities You Need To Know

It’s time to Look Beyond Traditional Investment Options if you are serious about making money. As far as traditional investing options are concerned, you have choices like property, bonds, shares, cash etc. But there are alternative investment opportunities which might bring better dividends for you. You should definitely try some of these unusual investment opportunities. Smart investors invest in alternative investment opportunities as they are able to deal with the risks involved with this. Let’s take a look at some of the alternative investment opportunities below.

Financial Pie Chart

Structured products

Let’s check out structured products first.

  • Here we are talking about a contract with a particular financial institution.
  • The financial institution is supposed to pay a certain amount at certain interval depending on the performance of the stock market.
  • It is one of the safest alternative investments out there.
  • Could you lose money? Well, only when the stock market performs badly. Or in other words, it is a safe alternative investment opportunity for you.

Bridging finance

What do you mean by bridging finance? We are talking about short-term loans used by property buyers. They can approach a bank for a mortgage. But it may take so much time to get the approval. When it comes to private investors, you can think about investing in funds that deal with pool loans. What is really good about this is that you can reduce the risk factor considerably as there are so many borrowers involved in this. You get the loan by showing your property.

Peer-to-peer lending

Now let’s check out peer-to-peer lending next. As the name suggests, we are talking about a direct deal between the lender and borrower. The lender can meet with the businesses or individuals who want money. It works well for both the parties – lenders get to make more money on their investment, whereas the borrowers manage to get money on time without any hassles unlike in the case of a bank loan. However, it can be a quite risky investment for the lender for the simple reason that the borrower might become bankrupt. This is the risk that you need to deal with. When it comes to investing, investment diversification is really important. This article Will Tell You More About, Why Investment Diversification Is A Must?

Forestry

Well, investing in woodland is a really good option because there are a number of advantages attached with it. For example, the price of the land might get increased with time. The same can be said about the trees on it. You can also consider an additional source of income – selling trees for timber. The increase in land price is the icing on the cake here. Also, you will enjoy very good tax breaks as well. The tax exemption makes this option even better. Exemption from inheritance tax is something that will put a smile on your face.

Buy-to-let property

Well, this is yet another good alternative investment opportunity you should try. It will be an asset for you and will be added to your overall wealth. If you want to use it as a deposit, you must have minimum 25% of the property value. You also need to consider the legal fees and refurbishment costs as well. But there are issues to deal with. You may face competition from professional landlords in the business. Rogue tenants also would pose trouble for you. Last but not least, you need to address the maintenance issues as well.


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