For beginners in investing, stocks, mutual funds, and real estate investments are familiar investments.
However, recently, investment targets have become more diverse, and more and more people are enjoying choosing unusual investment targets.
This time, I would like to take a look at some unusual investments that are not stocks or real estate investments.
Let's explore tips for choosing an investment target by touching on a variety of investment targets.
Criteria for selecting investment targets
Investing is spending money with the expectation of future returns.
Depending on which investment target you choose, when and how you can earn profits, as well as risks will vary.
First, let's take a look at what points to consider when choosing an investment target.
Which is more important: income gain or capital gain?
Income gain and capital gain are classifications that focus on how future profits can be obtained.
Income gain is the income earned during the period of holding an investment.
Dividend income from stock investments, distributions from mutual funds, and rental income from real estate investments are income gains.
Capital gains, on the other hand, are the gains made in value when you sell an investment.
The point of whether to focus on income gains or capital gains is an important point that will affect cash flow during the investment period, so you must understand it thoroughly before investing.
Is the return commensurate with the risk?
In general, low-risk investments can be tolerated with low returns, while high-risk investments require high returns.
However, investment targets include high-risk and low-return options, so careful consideration is required.
It is important to consider how much risk an investment target poses, whether that risk is acceptable, and what percentage of return it will yield compared to other investment targets.
Investing with tax efficiency in mind
Although this is a bit technical, some investors place importance on investing with consideration for tax effects.
Typical examples include real estate investment and effective use of land to reduce inheritance taxes, but there are also other ways to reduce profits and improve cash flow by recording a large amount of depreciation during the investment period. There is also an investment method.
When investing with the aim of achieving tax benefits, advice from experts such as tax accountants and investment consultants is essential.
5 unusual investments
Here are five unusual investments that have recently become popular.
There are a variety of options, ranging from those that allow you to invest from tens of thousands of yen to those where the minimum investment amount is several million yen.
Please keep in mind the points listed in the previous chapter for determining investment targets and consider whether they are attractive as investment targets.
Wine and whiskey investment
Wine and whiskey investment is a type of "commodity investment."
In the commodity market, various products (commodities) such as gold, silver, and platinum, as well as soybeans and corn, are traded, but wine and whiskey investments are rarely open to the public and are traded in closed forums. .
As wine and whiskey are consumed over the years, their rarity increases, and as they are aged in barrels, their quality improves, so you can expect profits from rising prices. That's why some wealthy people are diversifying their investments into a variety of barrels and bottled wines and whiskeys.
Unless there is a major natural disaster or change in circumstances, wine and whiskey will age smoothly. Although there is a risk that the price will not rise, it may be an interesting investment considering that you can enjoy drinking it yourself.
antique coin investment
Antique coin investment is an easy-to-understand investment that invests in anticipation of capital gains on coins.
Once a coin is issued, the number will not increase in the future, so the price increases as the rarity increases.
It is important to have a good eye for coins, but at reliable auctions in Japan and overseas, coins are often sold with a certificate of authenticity.
Coin collecting is popular all over the world, and there will never be a shortage of coin collectors.
As long as you don't make any mistakes in the coins you invest in, it can be said to be an investment where you can stably aim for capital gains.
Crypto asset mining investment
Although investing in Bitcoin and Ethereum is no longer uncommon, investing in businesses that mine crypto assets remains popular among some investors.
Transactions of crypto assets are recorded on the blockchain, and a system has been established in which you can receive rewards in crypto currency by participating in the recording process via a computer. This is "mining".
Crypto asset mining investment is a method of obtaining income gains by installing a large number of crypto asset mining equipment (computers programmed to perform mining) in areas where electricity rates are low, such as Southeast Asia and inland China. .
coin laundry investment
Coin-operated laundry machines are convenient on rainy days, but over the past few years more and more investors have been using them as a business investment that can yield high investment returns. Although it is a business investment, the actual business operations are outsourced to a specialized company, so there is no need for any complicated procedures or work other than purchasing coin laundry equipment.
Depending on the location, you may be able to recover your investment within two to three years, while other times you may be forced to relocate without making much profit. Therefore, it can be said that location selection is an important key investment.
trailer home investment
Lastly, I would like to introduce mobile home investment, which has been attracting attention recently.
A trailer house is a house or store that can be moved on a trailer.
A camper is a car, but a trailer house is moved by being towed by a car.
If you have a large site, this is a versatile building that can be used as a separate residence, children's room, office, or store. If you consider it as an investment, you can consider operating it as a lodging facility such as a private lodging or pension.
Three charms of trailer house investment
Investing in a trailer home has great appeal that traditional real estate investment does not have.
First, because it is not real estate, construction costs are much lower, making it easier to recover your investment.
Even if the cost is low, it is possible to create a sense of luxury by installing luxury building materials and equipment.
It can also be installed in locations where buildings cannot be constructed as real estate (such as urbanization control areas).
Therefore, it can be installed on plateaus or along the coast, where it was previously impossible to build buildings, and you can enjoy a spectacular panoramic view.
It is also an excellent investment in terms of tax efficiency.
Previously, the depreciation period was 7 years as a simple structure or 4 years as a car, but now it is legally classified as a car and has a depreciation period of 4 years.
As a result, we were able to record a large amount of depreciation expense early in the investment period, significantly improving cash flow during the investment period.
Recommendation for investment with emphasis on cash flow
If you consider investment as a part of your business, we recommend investing with an emphasis on cash flow during the investment period.
In that sense, wine and whiskey investment may be considered an investment for somewhat advanced investors, as the investment target will not be converted into cash for a long period of time and it will take time to sell it midway through.
Some of the investment targets introduced this time have few examples, so it may be said that the risks are slightly higher than general investment targets. However, you can expect a sufficient return commensurate with the risk, so why not try it out as one of the many investments you can make?
At Conspirito, we have a wealth of content on our website that you can learn from the perspective of a real estate management company.
The person who wrote this blog
Conspirit Blog Writer
Conspirito's official blog writer will deliver useful information about real estate.