Investors believe that you can invest in pretty much everything you can get your hands on as long as you have the money. There are different types of investment but alternative investments are gaining popularity these days. Alternative investments are the opposite of traditional investment schemes like stocks and bonds. In the past, people only know stocks and bonds as a form of generating money and accumulating wealth.
The good news is you can amass wealth with the right alternative investment. You have to know that alternative investment is extensive. Examples include real estate, commodities (gold, silver, platinum, copper, zinc, tin, aluminum, nickel, cobalt, crude oil, natural gas, ethanol and many more), farmland, timberland, mineral rights, equipment leasing, intellectual property rights, art and collectibles, wine, private equity, shipping containers and many more.
If in this case, you want to consider shipping containers, here are the things that you should know about this:
What is a shipping container investment?
This is a type of alternative investment where you purchase a container and then lease it to shipping companies and other merchants. With this, every time that your shipping container is used, you make money.
Why investors seek out this alternative investment?
Many investors seek out this investment because the shipping industry is big. It presents the investors with significant return potential at the end of the day. Aside from that, investors also consider this because it is subject to favorable tax treatment. Moreover, alternative investment appears cheaper, which is attractive for long-term investors.
Who can help you?
To make the market more accessible to investors, there are agencies that act as “middlemen” or “brokers” like Davenport Laroche. The agency’s main goal is to connect the shipping container investors with merchants. The brokers have the knowledge to help investors locate and contract shipping companies. Yes, you can find shipping companies on your own but it is a difficult task and it is better to leave it to the experts to be successful. If you want to diversify your holdings, you need to renegotiate with the company. They will simplify the processes.
What are the advantages of investing in shipping containers?
There are many advantages to investing in shipping containers. The most obvious one is that it is considered the underserved market. This means that the shipping industry is big but there are not enough shipping containers in the market. With this, the returns are potentially high. Another advantage is the effective interest rate based on the lease rates.
What are the known risks of investing in shipping containers?
Like any investments, shipping containers also involve risks. Returns are not guaranteed that is why you need to ensure that you understand everything and you decide accordingly. It is crucial that you research thoroughly before indulging. It is not enough that you want to limit your exposure to volatility by diversifying. You need to determine the best option to get the most out of your investment.