When people hear the word investment, their brain automatically shifts to Wall Street and the stock market, but that’s not always the case. There are plenty of examples of Non Financial investment opportunities that exist in our everyday lives. So, I’ve compiled a list of some fascinating Non Financial investment types.
Real Estate has been one of the most popular forms of nonfinancial investing, as it is a highly profitable mode of investment; somehow, real estate prices only seem to go up. Property is an asset type with limited liquidity relative to other investments and can be purchased in many forms. Real estate can turn out to be risky if certain factors are not checked upon. One of the main issues with real estate is that the initial investment costs are high and are often one of the first things liquidated when an investor has a negative cash flow.
There can be a lot of money in collectibles, the trick is sorting through the long list of collectibles on the market and determining what is and isn’t valuable. Collectables can include coins, antiques, works of art and even toys. In the long-term, collectibles have high rates of return, and tax advantages but is incredibly important for the person investing in collectibles to know the market well so they can recognize trends and make smart investments. Collectibles cannot be resold for a big profit quickly; the investor needs patience as they must wait until its value increases. The storage, maintenance, and transportation costs should also be considered as the quality and condition of the collectibles has a drastic effect on price. A great example of collectibles fetching incredibly high prices is trading cards like Pokémon, with prices for original set cards fetching prices up to $300,000.
Forestry investment is relatively risk-free and it provides competitive returns for investors looking for long term investment. There are two forms of forestry investment: indirect and direct. Direct investment involves buying shares directly from a forestry investment company, while indirect investing involves actually owning the land itself. One of the main concerns of forestry investment are environmental factors like fire, poor weather, and insects.