Some people don’t like the idea of investing in digital numbers on a screen. Tangible investments allow you to pour your money into something physical that can be touched. In some cases, you may even be able to restore or improve these physical items to add value to them. Below are just a few examples of tangible investments for those that don’t want to invest in stocks or crypto.
Real Estate
Real estate is the most common type of tangible investment. It could involve buying property or it could involve buying land. This type of investment often involves putting in a large amount of funds up front (many investors take out a mortgage) – however the potential for profit can be great.
When investing in property, there are numerous ways to make a return. You could buy property and rent it out to tenants or business owners. Alternatively, you could buy property with the intention of ‘flipping’ it – this involves buying cheap property, renovating it and selling it for a profit. Then there’s the option of hiring out property for events or classes.
Investing in land is less popular but can be equally profitable. You could build property on the land and sell it. Alternatively, you could rent it out as allotment space or hire it out as a public car park.
In each case, it’s important to shop around carefully before you buy. An investment can easily turn sour if you buy the wrong property or the wrong piece of land. Make sure that your real estate is suitable for your investment goals (for instance, not all land may be buildable and not all property may be appropriate to rent to tenants) and get it surveyed.
Precious Metals
Precious metals such as gold and silver are another example of a tangible investment. This could involve buying coins, jewelry or bullions (your classic gold bars).
When buying precious metals, it’s important to buy from a reputable dealer. Your purchase should come with official documentation so that you can be sure of the purity. You’ll likely want to insure your precious metal and store it somewhere secure such as a safe or a vault. In some cases, you may be able to clean and restore old jewelry and coins to add value.
Collectibles & Antiques
Collectibles and antiques are a popular form of investment. They often allow people to center an investment around a personal passion. For instance, a music enthusiast may invest in rare vinyl, while a car enthusiast may invest in classic cars.
It’s important to understand the difference between being an investor and a collector. As an investor, you need to be prepared to sell any assets that you buy in order to make a return and not grow too much of an attachment to them. Certain items may be able to be restored to add value such as antique furniture or old cars. You should always buy items from trusted sources – in some cases, you may want to hire a professional authenticator to ensure that you’re not buying a fake (important when buying celebrity memorabilia, fine art, old coins and rare books).
Leave a Reply