5 unique investment opportunities
There are always new investment products popping up on the market. We live in a world where you can virtually find an investment to not only suit your goals and appetite for risk but your personal taste too.
At TAB we are dedicated to helping investors build their own diversified property portfolios through bridging loan investments and fractional property. However, that doesn’t mean sometimes we don’t like to see what other weird and wonderful opportunities other companies are offering!
Below, we take a look at some of the more unconventional investment vehicles. As with any investment, there are always risks and it is important to do your own research or take expert advice. This is particularly relevant for alternative investments. This article is for information only and does not constitute advice or a personal recommendation.
1) Valuable British coins
As a nation, we like to evolve our currency. There’s rarely a period of time that goes by without a note or a coin getting a makeover. When the new decimal system was introduced in 1971, those pounds, shillings and pence became redundant and some of them could fetch quite a bit today.
Investing in rare coins may seem mundane. But with some being sold for thousands and thousands of pounds it’s certainly an avenue to consider, particularly if you are able to secure rare British coins for a low price and hold onto them for a few years.
One of the most expensive coins ever to be sold is the 1933 George V Penny. Only four are in existence, with one fetching £72,000 when sold in 2016.
2) Contemporary art
You might find some investors who are interested in investing in historical art pieces. But, contemporary art investment is typically dismissed as there doesn’t seem to be much return on capital spent. However, we are here to tell you that there are some outliers. Low-priced art can often do much better than high-priced art at auction. For example, Marcel Duchamp’s work skyrocketed in value. Some investors who had their hands on his pieces saw percentage returns in the hundreds.
3) Self-storage units
Commercial property is an investment sector that can be difficult to invest in without considerable cash. For a long time, the self-storage market has been dominated by large PLCs, with a peppering of privately owned, local companies. Self-storage opportunities currently represent an area of commercial property investment that is seeing growth due to new market entrants using innovative models to raise finance. The only catch returns rely on units being fully tenanted.
You can invest in alternative commercial property investments through vehicles such as TAB Lending. You can invest in short term unregulated loans that are secured against either UK commercial and residential property. With TAB Lending you could invest in a loan taken out on a commercial office or a mixed use project. You have the freedom to choose the loans that best suit your investment needs. Everything can be easily managed online, simply register for a TAB Invest account and start your journey from just £1,000.
Throughout history, gold has been coveted and traded by the world’s aristocrats and royals. Today, it is more accessible and is regarded as a tangible inflation hedge and a long-term investment vehicle.
The sought after asset class is a favourite with investors who are looking to diversify their portfolios as it has a low correlation with stocks. The peaks and troughs of the stock market can be outweighed by the stronghold of gold, making it a handy rescue asset when other investments are fluctuating.
When many envisage investing in gold, coins and bars spring to mind. Gold EFTs, gold accounts, and gold mining stocks are some of the most common ways of investing in precious metals without having the physical product.
However, these can often be expensive routes into gold investment. For smaller investors, or those who don’t want to take the plunge with their capital straight away, buying smaller amounts of physical gold, such as gold bullion, can be a great way to get started.
5) Parking spots
Many homes in UK cities don’t come with a driveway or on street parking. The same applies to business premises. There are many people who have cars and don’t have anywhere to safely park them. This is where you could step in as a savvy investor.
Buying a parking space can vary in cost depending on location and whether it’s a single garage, a street space, or part of a parking complex. In London, they can vary from £25,000 to £200,000. Buying a parking spot with your capital may seem like a huge outlay but, with tenants renting the space you are guaranteed a monthly income with little management needed.
Let’s say you purchase a space in the city for £25,000. You then let that space for a chargeable period of 5 years at £300 a month. 60 months multiplied by the £300 rent will recoup £18,000 of your investment. However, you then decide to sell the parking space and prices have increased. You purchased your space for £25,000 and it sells for £45,000, bringing you a profit of £20,000. Your sale profit added to the rental income of £18,000 means you’re £38,000 better off and equates to a 7.6% return on investment per annum. This is just an example of the potential returns you could get. This depends on location, and whether you can find a tenant but it is something to consider!
This article is for information only and does not constitute advice or a personal recommendation. As with any investment your capital is at risk and you should seek advice concerning suitability from your investment adviser.