One of the most intimidating barriers to expanding your investment portfolio is often deciding on the most lucrative yet secure areas in which to invest. Everything seems uncertain in today’s fast-paced economy. Fleeting fads can make a select few rich, but they more often than not deplete your savings. Instead of following along blindly with the latest financial trends, do your research and consider investing in one of the following methods that provide a relatively “safe” income.
Commercial Real Estate
If you’ve ever rented an office or warehouse space, you’ve probably realised that it must be pretty lucrative for the landlord. This is especially true for upmarket facilities in prime locations. However, even smaller spaces in less than ideal locales can pull a pretty penny. Instead of begrudging high overheads, why not flip the situation and make the commercial rental sector work for you? Find a specialist commercial real estate agent to help you select and manage the property and guide you through the process. Owning commercial property can provide a stable, safe income that delivers a higher yield than residential properties.
That is not to say, however, that having a residential rental property is a bad idea. The residential market is booming, and people will always need somewhere to live, so residential property is still a safe bet for investing your hard-earned cash. Be aware, however, that this will most likely turn a lower short-term profit than a commercial property and does come with a slightly higher risk as houses are more likely to be damaged through normal activities than commercial offices.
Everybody knows that sooner or later we’re going to run out of fossil fuels and savvy investors have responded by moving towards renewable energies. Business in the renewable sector is on the rise, and as such, most forms of renewable energy will offer a positive return. However, the benefits don’t stop there. Renewable energies are often cheaper for all involved; this means higher profit margins for companies and lower costs for consumers. When you couple this with the fact that the field is so much better for the environment than non-renewable alternatives, you end up with a self-fulfilling recipe for success.
If it ain’t broke, don’t fix it. Stocks have long been a part of almost every investor’s portfolio. They wouldn’t hold the status that they do today if they didn’t often provide a healthy dividend. The issue with entering the stock market, however, is that you’re essentially gambling that the particular company you have chosen to invest in is going to perform well.
When considering what stocks to buy, it is almost always best to go with a well-established company that has both a good track record and high future projections. This is easier said than done but if you can make the system work for you, you’ll definitely be on to a winner.
While reading this article, you may have noticed a recurrent theme: All four options presented here can be considered necessities. Society will always need property, energy and many of the products and services offered by blue-chip companies. It is this indispensability that makes these options safe investments. If you play your cards right, you’ll maximize your chances to make a profit. So, sit down with your accountant/partner/coffee and have a think about what would work best for you.