When it comes to investing typically a few of the more well-known investment types spring to mind, savings accounts and stocks and shares being the most prevalent. These are the most common types of investments for your average investor, but, did you know there is an alternative pool of investments you could make? There is a whole raft of alternative investment options available to even the average investor. So if you are looking to diversify your portfolio or break ranks a little below is a list of some alternative investments you may want to look into.

 

Commodities 

 

Commodities have been traded and invested in for thousands of years. Quite literally. Traders have dealt in gold and natural resources as far back as the 16th Century. However, in the modern world trading and investing in the commodities market is now a regulated revenue source and even a career for many. Commodities are mostly natural resources, such as oil, natural gas, wheat, and precious and industrial metals such as gold or copper. All these resources have a fluctuating value which is dependent on supply and demand. That said, when correctly invested in commodities can prove to be a lucrative move.

 

 

Collectables 

 

Investing in a collectible is the process of purchasing a physical item and holding onto that item in the hope that its value will appreciate over time. This can be a particularly interesting or rewarding investment for those who have a particular penchant for the collectable in question. That said it is not always a straightforward investment as the cost of acquisition can be high and your resources will be tied up in an asset until sold. Further, this type of investment requires a certain level of skill and knowledge to ensure that it is indeed a sound investment. Here are some of the common collectables typically invested in; 

  • Wine
  • Art
  • Stamps
  • Vintage cars
  • Antiques  

 

HMO Properties 

 

Property investment is a typically well-known means of investing. That said, the common types of property investment include buying, renovating and selling at a profit or your traditional buy-to-let property. HMO properties are commonly overlooked when it comes to property investment and as a result, many investors are missing a lucrative trick. HMO properties housing multiple occupancies. Essentially it is a house in which at least tenants live and they share the communal facilities with the other occupants. Not only can HMO properties be a great way to diversify your property portfolio they can also provide some of the following benefits; 

  • Higher yields. More often than not HMO property will provide a higher rental yield that a traditional buy-to-let property, as you will have multiple occupants paying for their room and use of the communal areas as opposed to one family or occupant. 
  • Higher demand. While there is always a demand for rental properties the demand for shared living remains equally high, if not higher. With escalating costs of living, especially in bigger towns and cities, affordable rental rooms are more popular than ever.
  • Better income protection. When one tenant moves out you will still have several other tenants paying their rent and keeping your income afloat while you find an alternative tenant. 

 

(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)