Investing your money can be a great way to increase your capital and even generate an income, providing you know where to put your cash. With numerous non-traditional investment opportunities available, you may want to try something different in order to maximize your returns. If so, take a look at these innovative investment options:
1. Real Estate Crowdfunding
Investing in real estate is an extremely popular way of making a profit but you typically need a large amount of money to get started. Until now, that is.
Real estate crowdfunding allows you to invest in the property market, even if you don’t have the capital to buy a house, apartment, or commercial premises. In fact, you can invest in real estate crowdfunding with a little as a few hundred dollars.
Although you won’t own property via this form of investment, you can choose to invest your cash into property funds. Depending on how the market performs, you could make a substantial return.
Fortunes have been made by savvy cryptocurrency traders in recent years, so it’s not surprising that it’s becoming increasingly popular. By buying cryptocurrency at a low value, reselling it for a higher amount, or holding on to it and hoping its value increases, you can increase your capital by a significant amount.
However, you will need to familiarize yourself with the available platforms and the methods of buying cryptocurrency before you get started. In addition to this, you’ll need to consider the impact this type of investment will have on your tax liability. With a handy cryptocurrency tax guide, you can determine whether investing in the market is the right option for you. As more jurisdictions introduce legislation to ensure cryptocurrency returns are taxable, this is always an issue worthy of consideration.
3. P2P Lending
Peer-2-Peer lending allows you to make money by lending to other people. Depending on the platform you use, you could lend as little as $50 or thousands of dollars at a time. In addition to this, there are numerous repayment options, so you can choose how long you want to wait to get your money back.
The borrower will pay a pre-agreed rate of interest, which is how you’ll make your money. Of course, you’ll need to check what safeguards each platform has in place to ensure loans are repaid in full, or you could risk making a loss.
4. Seed Investments
If you’ve got an eye for business, why not become a seed investor? Working with startup companies can be a fun way to boost your capital and you may be surprised at how much you could make. Seed investors typically provide funds to budding business owners in return for an equity stake in the enterprise. It can take quite some time for you to make a return and, if the business folds, you won’t get anything at all. Despite this, it can be a lucrative way to make a large amount of money if the business is a success.
Choosing the Right Investment Opportunity
Before you decide where to put your money, consider how much risk you’re willing to take, how much you can afford to lose and how quickly you might need to access your funds. By assessing these three core issues, you can narrow your search and find the best investment opportunity for you.