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Is there a better alternative to investing in the stock market? Reading charts, watching the news on stock prices, or reading journals may be hectic. Besides, what time do you have available to consume all this? The bigger headache is leaving your money in the hands of a broker who explains to you why prices are unstable daily. Yet all you want to know is where your money is going and when your profit is coming in. Have a look at these alternatives.
Fixed Income Investment Thinking of earning periodic income? Governments, banks, and some corporations raise funds from the public by borrowing with the assurance of paying back at a specific time. These are known as fixed-income securities. The most common fixed-income deposits are bonds and treasury bills. Interest payments come in steady streams at periodic intervals throughout the lifetime of the security. At maturity, the investor receives the principal. Some bonds, however, don’t offer interest payments. They are rather priced at a discounted rate from the principal. The accumulated interest will be received together with the principal at maturity. The difference between the treasury bill and bonds is that treasury bills last for a short period while bonds are for long-term purposes. Real Estate Investment Talking of real estate, you may have thought of carrying a huge sum of money to purchase a property. But that is not always the case. Real estate investment is actually simple and fun. There are different forms through which you can earn money from real estate; residential real estate, commercial real estate, REIT, or crowdfunding. Residential and Commercial Real Estate Traditionally, real estate is seen as investing in residential or commercial real estate. Investors under residential real estate rent gain profits by renting out houses or spaces they’ve built or purchased. It could be a single room, apartment, or a home that is rented out for a period of time. Since the value of buildings appreciates over time, the profits also appreciate. Commercially, a property owner leases space for businesses like banking, shopping malls, supermarkets, or clothing shops. Commercial real estate investments have higher returns. This is due to the fact that the spaces are for business purposes. Also, businesses might have to make an upfront payment which might be a year’s rent.

The next two forms of real estate investment allow you as an investor to invest in a property without purchasing or building it from scratch. This is what makes the investment game fun.

REITs These are institutional investors that purchase properties like hotels, apartment buildings, shopping malls, and warehouses, just think of any property in the real estate industry. Investors buy shares through mutual funds. When the REIT takes rent from its tenants, it pays part of the profit as dividends to its investors (shareholders). This is quite common in a couple of investment banks, where the individual invests in such mutual funds. Some of these mutual funds are not for fixed terms, thus, you can withdraw your money at any time. However, investment means you want to wait for some profit. So wait to gain some reasonable profits before you withdraw. Crowdfunding This type of real estate investment raises money from a pool of individuals to fund real estate entrepreneurs’ projects. Crowdfunding allows you as an investor to fund a project that you would otherwise not have the ability to fund on your own due to highly required liquid capital. With this pool of funds, you access your profit without being hit directly by any high risks, as compared to other forms of investments. A very big advantage for investors in crowdfunding is that you can commit as low as $172 for your investment. You can access this type of investment on the internet or on social media pages. You may be a bit skeptical and hence, you would want to visit the crowd funders office for verification. But once you are okay with that, all your future investments can be conducted from the comfort of your home or office without any processing fees. Before you join a crowdfund, be sure the company is an accredited investor. If you would wish for more hands-off investments, REITs and crowdfunding platforms are stress-free ways to add real estate to your portfolio without being a landlord. Have you identified the alternatives that will grow your money while you sleep? Invest wisely

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