5 unique investment opportunities that are growing in popularity
Simplicity is key, especially when it comes to investing. People want less complicated investment structures and more ways to grow their wealth. And that includes the younger generations.
For the first time in history, investing is booming across all age groups. Example : According to Barron, 54% of Gen Z have at least one type of investment. As a result, adults all over the world are getting into the world of investing. Yet not all of them are sold on traditional investments or investment opportunities.
Instead, investors today want the chance to fill their portfolios with unique investments. They are especially excited about investments and investment platforms that weren’t available just a few years ago.
Below are some of the most popular investments gaining momentum right now. Like all investments, they involve risk. However, many promise the attractive potential for both short-term and long-term rewards.
1. Commercial real estate
Not so long ago, most individuals could not dream of investing directly in commercial real estate (CRE). They might be able to invest in real estate investment trusts, but not in actual commercial properties. Now they can.
platforms such as RedSwan leverage technology and blockchain to split CRE investment opportunities into smaller tokens. Each investor in a larger piece of CRE therefore benefits from fractional ownership. The tokens exist on a blockchain ledger, which makes them immutable and secure, and at any time an investor can sell their tokens.
Being able to bring CRE investing to more people is a real game-changer. Although real estate can be volatile, it is known to be a lucrative investment. The possibility of engaging in co-ownership offers investors a means of taking advantage of the advantages of CRE.
2. Fine Arts
Most people don’t think they could ever own a museum-worthy piece of art. Still, the fine arts are making their way into more “Average Jane/Joe” investment portfolios. One of the pioneer companies in this area of investment is masterpieces.
Masterworks’ investment setup is not far off from RedSwan’s. Masterworks also sells the condominium. The only difference is that the fractional ownership is that of a work of art, such as a painting or a non-fungible token (NFT). Co-owners have to wait several years before eventually seeing any returns. That being said, investing in the right art can be very profitable.
The biggest caveat about investing in art is that it’s a bit of a risk. What is “art” today is not necessarily considered “art” tomorrow. Still, for investors looking for something unusual and creative, co-ownership of artwork can be a great choice.
3. Loan between individuals
Lending money to strangers isn’t always the most reliable way to achieve financial freedom. Most people who borrow from their peers cannot obtain loans from traditional sources, such as banks. However, the greater risks of peer-to-peer lending have been mitigated through sites such as loan club and Prosper.
All peer-to-peer lending providers work pretty much the same way. Investors create an account. The account gives them the ability to view information regarding loan applicants. Typically, applicants are ranked by their risk profile based on a number of factors, such as credit history. The higher the applicant’s risk, the higher the interest on the applicant’s loan.
Once investors decide to invest in a candidate, they add their investment dollars to a pool of money. Essentially, all candidate loans are crowdfunded. This reduces the effect of losses incurred by defaulted loans. With the right mix of peer-to-peer lending, an investor can achieve consistent returns.
4. Start-up investment
Many entrepreneurs dream of opening a business. The problem is that they don’t have the money to make their dream take off. Startup investment platforms such as SeedInvest connect entrepreneurs and investors.
If nothing else, SeedInvest and similar sites offer a fascinating look at what the innovations of tomorrow could be. SeedInvest introduces company after company looking for raises. All investors have to do is jump into the mix and become crowdfunding angels.
To date, hundreds of successful startups have connected with investors on these types of platforms. They are worth checking out for any investor looking to fund disruptive organizations ready to remake the landscape of their industries.
No article on upcoming investments would be complete without including cryptocurrency. Bitcoin, Ethereum and other cryptocurrencies have earned a place in the portfolios of many investors.
MotleyFool Reports notes that 40% of investors between the ages of 18 and 40 have invested in crypto. In fact, young investors seem to be changing the perception of crypto as a go-to investment. Over the years, more and more Gen X and Baby Boomer investors have decided to get into crypto. Many experts assume this is because older investors are learning about the potential of crypto from their children.
Digital currencies are not without their ups and downs, of course. Unlike more tangible assets like real estate, crypto can go from highs to lows quickly. Nevertheless, many crypto enthusiasts believe that this will be the wave of the future. Certainly, if the Metaverse and Web 3.0 come to fruition, crypto will play a major role on the internet.
Basic investments like stocks, bonds, commodities and precious metals went nowhere. They still appear in wallets around the world. But other investments are coming, making investing more interesting and exciting than ever.