Every standard investment advice consists of making a big purchase in the shape of a house, as it’s generally viewed as one of the best ways to get a good return, or if you ask for another item to invest in, most people will say get another property! But are there other options for investment that don’t involve four walls and a roof? Well, surprisingly enough, there are!

Precious Metals

Precious metals like gold are considered to be quite controversial assets. Some people see them as a no-brainer and are a foolproof investment, and while others may view them as a nightmare, the fact is that the truth is neither here nor there, but they are responsive to certain market conditions. Precious metals appear to gain value when the dollar is weak, and then weaken when the dollar is strong in value. However, this is not an exact science. And of course, we don’t know when this will occur, so it’s best to have some precious metals available at all times. The great thing about items like gold bullion is that you can purchase them and keep them safely at home.

A Boat

A lot of people would consider a boat to be a terrible investment. However, this is largely due to the upkeep and maintenance of the boat. The financing alone can be crippling, but there are sites like boatfinancing.co that can show you the best options for getting a loan to purchase a boat. As time goes on, and the concerns about rising water levels and the threat of natural disaster at every corner, it would be very sensible to own a boat. So not only is it a sensible investment right now, but it’s something that is going to be highly desirable in the coming years.

Peer To Peer Lending

As a way to remove the middleman out of the equation, this is a great way to get a higher rate of return. It benefits both sides, the investor, and the borrower, as the borrower gets a lower rate. Many organizations specialize in peer to peer lending, such as ratesetter.com, but there are plenty of other peer to peer lending platforms that have a decent return on investment, you just need to look for them. But you need to beware that with certain lending platforms, you may be required to invest more than $50!

Wine

Yes, believe it or not, wine is a great product to invest in because it can increase in value as it ages. With the right type of vintages, these can be highly sought after, and you can make a decent amount of money. Of course, to make the most out of this investment, you need to have a good understanding of wine generally, but you also need a room to store them in that is temperature-controlled. To get a substantial profit from your wine, you will also need to buy in bulk. In addition, you need to keep notes of when you bought certain vintages and where from, as these are vital trinkets of information to wine connoisseurs.

You see? There are more investment ideas than a house. So take some of these ideas on board and start investing!

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When a person invests in real estate, he or she doesn’t go to an auction. Usually, they find a realtor, view a variety of properties, and make a few bids. There is nothing wrong with this method. In fact, it’s a tried and tested technique which has provided excellent results on many occasions. But, that doesn’t mean that an investor only has one path to walk. Regardless of how you feel, auctions provide a range of benefits which make them a no-brainer. For the non-believers, below are the reasons why they are great places to find cheap properties.

Seller’s Circumstances

No one likes to address this topic, but the conditions of the seller play a significant role in the price. Anyone who can afford to wait doesn’t have to go to auction. Instead, they can put their house up for sale and go through the normal channels. By definition, people at auction can’t do the same thing. They either have to make a quick sale for financial reasons or have gone bankrupt. Again, it isn’t nice to admit, but this is an opportunity. Because people need an immediate injection of cash, they will accept lower offers and you can pick up a bargain. Sometimes, the bank will set the price and that will reduce the value further.

Less Popular

There is no doubt that the majority of people use the method above to find an investment property. Therefore, auctions are less attractive and not as well frequented. The reason this is important is due to a lack of competition. If there are fewer people at an auction, the price is bound to stay steady. When that happens, you pay less for the building than normal. Yes, auctions are usually packed, but not every person bids on every lot. For the most part, you will have competition from one or two people and that will keep the price low.

Perceived Risks

Another reason an average investor stays away from traditional and online auctions is the risk factor. In their eyes, the negatives outweigh the positives. Yes, there are risks and you will have to take a gamble of sorts. Still, the dangers aren’t as big as people like to imagine. After all, everything is in document form, signed and accounted for. Plus, there is a description of the house flaws. By reading this, you can get an idea of what to expect. Ultimately, the stigma keeps investors away and increases the chances of a bargain.

Play The Game

Think of an auction like a game of poker. By bluffing the other people in the room, you can keep your cards close to your chest. If they don’t know which properties you find appealing, they won’t up bid and increase the price. For example, a great trick is to bid on lots which aren’t attractive. This will get the ball rolling and people thinking the property is a keeper. When it comes to the one you want to buy, the competition will be less as everyone will have made their bids.

As you can see, an auction is an excellent place to find an investment property.

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Many people consider self-building a home, rather than buying a property on the market. If they haven’t been able to find their dream home elsewhere, it makes sense to build something from scratch, with all the features they have been looking for. However, you need to consider the costs. On average, it costs around $300,000 to build a home, so weigh this against the cost of buying pre-existing property on the market before you make a decision.

If building a home is something you have set your heart on, these are the steps you should take, and how they affect your finances.

1: Set a budget

You need to set a realistic figure before you begin, factoring in the cost of the land, building costs, loan repayments, and a contingency to deal with those unexpected costs. Use a construction cost calculator to give you an idea of the costs involved, as you don’t want to run out of money midway through the project.

2: Find the right location

You don’t want to build in an area that is inadequate for your needs, so think ahead. It is often cheaper to buy land on the fringes of a town or city, rather than the middle, so factor that into your choice. Wherever you choose, pay for the services of environmental consultants to make sure the land is safe, and free from hazardous materials and pollutants.

3: Speak to your lender

You need funding in place before the project can begin, so once you have chosen a plot to build your property, speak to your bank or another lender about arranging a construction loan. Funds will be released in stages, so you will only be paying interest on the amounts you have already drawn.

4. Know what you want

You need to have a clear idea of what you want your home to look like before you call in the builders. Your budget will dictate some of this, so speak to the experts, including architects and home designers who will help turn your dream into a reality.

5. Get planning permission

Before you start to build, you need to know that you are legally allowed to do so. Speak to your local authority for advice, and they will let you know the regulations attached to building property on the land you have chosen.

6. Factor in the hidden costs

Have a look at this article that will give you an idea of what to expect. There are costs you will expect to pay for, but it is good to be prepared for hidden and extra costs before building work commences.

7. Begin building

Should you choose a building firm, be sure to find somebody reputable. Be wary of those offering lower prices, as you don’t want anybody cutting corners on your project. There is some helpful advice here on keeping costs down in the construction process, whether you hire contractors or take on the building work yourself.

8. Enjoy your home

Finally, you will be able to enjoy your home, and spend whatever you think is necessary on the finishing touches. You could create the perfect home for you, or add value to sell later on. Enjoy.

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Knowing how to protect your earnings is an absolute must if you’re going to avoid bad financial situations befalling you both now and in the future. Luckily, we’re here to give you a few ideas on how to do just that. Here are 3 ways you can protect your earnings:

Have A Savings Safety Net

Having a savings safety net is crucial, whatever job you do and however much you earn. Consider every eventuality for a moment. Is there a chance somebody could fall ill? Could you take a pay cut? Could you lose your job? Many of these things can happen to anybody at any time. A savings safety net takes a while to build up, but when you experience an emergency, you’ll be glad it’s there.

Take Out Income Protection Insurance

Income protection insurance will help you if anything happens to your income in the long run. This is especially helpful if you are a contractor or a freelancer who could fall ill and lose out on cash. You’ll be seriously glad you got the appropriate insurance cover, even if just for peace of mind.

Use Your Money In Smart Ways

Make sure you use the money you have in smart ways. You should invest as well as save, as investing is one of the only ways to make a great return on your cash. You should also know when to lease or buy, as this can make a huge difference to your finances overall. Take a look at the infographic below for more information:

credit to auto.loan

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Today’s media tells us that you haven’t really ‘grown up’ or ‘made it’ until you own your own home. So a lot of people only tend to rent temporarily until they have the finances, right? Or wrong. There are tons of advantages to renting your home instead of actually buying it. Here are 11 reasons why.

1. It’s cheaper

Upfront rental fees and deposits may seem a little pricey, but they’re way cheaper than all the hundreds of thousands of dollars it costs to buy a home. If you want to do things the best way, then get your savings stacked away so you have exactly what you need for that very moment. Most rentals will require the first month’s rent upfront, along with a deposit. If when your lease is over, and you plan on leaving, you will only get that deposit back if you leave the place in the mint condition it was in originally. But if for example, you punched a hole in the wall, your tenant has the right to keep your deposit to cover the costs of damage.

2. Buying and selling a home is difficult for everyone

Whether you’re trying to buy a new home or sell an old one, it’s a lot more complicated than just signing a piece of paper. Homes are usually on the market for around four weeks, and almost half of the sellers end up reducing their asking price at least once.

3. There are options for roommates

Getting some roommates is always a great option if you’re looking to share the costs of your living expenses with someone. To have another person to split all the bills with is just ideal. Whereas owning a home, one person is responsible for the big bill at the end of the month. So if you have a rather flaky roomie that is always late on rent, you’ll have to figure out a way of making up the difference. But when renting, apartment complexes are used to working with multiple tenants in one location, so they are able to offer you options for individual leases instead.

4. You have time to repair your credit

A bad credit score will make the chances of buying a home extremely difficult, so all those irresponsible days back in college will come back to bite you in the behind. If this refers to you, then it will be a lot easier to rent rather than buy. You will also be able to take the time paying all your loans off without feeling under the mighty pressure like you would, trying to buy.

5. You can be flexible

Owning a mortgage ties you down. It means deciding on a location that you want to stay in for at least a few years. If you know you can be the indecisive type, are you sure you’re able to settle for that long? You won’t be able to just pick up and move because you got bored of looking at the same tree every day, or when you get that job opportunity you’ve been pining after.

6. Property taxes are pricey

A lot of homeowners don’t realise the costs that arise when owning a home. Bills like insurance, maintenance, and property taxes all combine into this ridiculous amount that is very intimidating. The other issue with this is taxes can rise, for no reason whatsoever, and there’s nothing you can do about it. Rentals, on the other hand, are consistent through the duration of the lease.

7. Maintenance issues are not your problem

Not everyone is blessed with the handyman gene, so for homeowners, you usually end up having to pay a big sum of money for a professional service to come in and repair or replace whatever problem you have. But if you go with a hdb room rental, all you have to do is pick up the phone and call the property manager, and they’ll have someone come in and sort out the issue.

8. You have more access to amenities

Sure, peace and quiet is always a nice option to have in a home. Living in the countryside, with only the friendly neighbour next door to disturb you with their homemade peach pie. But let’s face it, there will be plenty of things that you’re missing out on too. When you rent, you’re part of a community which gives you access to things, like the wifi, the pool, or even that gorgeous park with the perfect green grass.

9. You just don’t have the finances

If your income can be pretty irregular sometimes, whether you’re a new small business owner or work as a freelancer, renting would be a more stable option to take. You don’t want to be in over your head, and it’s very easy for that to happen when buying, so rent until you truly know your circumstances.

10. Upkeep is less expensive

If you own your own home, you can forget about chilling out in your garden, basking in the sun. That big backyard of yours needs to be mowed… Again. The hedges need to be trimmed. The weeds need removing. Let alone the gutter! – That storm last week really made a mess of things, you’re going to have to unclog it before everything seeps into your garage. Renters, on the other hand, don’t need to lift a finger.

11. There’s better security

Most rental apartments will have a high source of security around the area, which will all be included in your agreement. This is a particularly good benefit when a single individual comes along, because they may feel slightly nervous, especially if they’re a first-time renter. Knowing that the area is secure and being watched at all times will make you feel a lot more at ease. If you were a homeowner that wanted to find a neighbourhood with these perks, you can expect to pay a lot of money for all the extra safety precautions.

So as you can see, there are tons of advantages and benefits of renting rather than buying. So get weighing up your options and figure out what works best for you.

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