Top 10 Biggest Assets People Purchase

12.09.2019 by Jack H

Banks are now offering an exceedingly low amount of money in exchange for your savings, which means a trend is growing whereby individuals are investing their money in assets which have the potential to earn more money, or simply to increase in value. In an ever-changing world, many can seek peace of mind by knowing that they have invested in an asset that will increase their capital and help maintain their lifestyle.

So, if you've recently inherited a sum of money, or if you've just received a bonus at work, here's how to make the most of your money. Whether it's through property, technology or a painting, there are plenty of large assets available and ready to be purchased.

Purchase a Second Property

Property is renowned for being one of the best assets that can be acquired because it can 'almost' be guaranteed to steadily increase in value over time – if you keep it maintained – while renting unused properties is a constant stream of income. Rather than purchasing a home in your local area, it is highly advisable that you begin your acquisition with in-depth research to find out which areas are likely to start to boom in the UK.

There are many areas around northern cities in the country which are on the brink of becoming a lot more valuable, and house prices are soaring in some of the country’s old industrial powerhouses including Leeds, Glasgow and Sheffield.

Stocks

This is one of the most popular ways to manage wealth in the twenty-first century. Investing was once a very difficult task, but now there are a whole host of apps that let you invest money and track the stock market with ease.

It is worth investing some time in learning how the stock market functions and what is worth purchasing so that your asset will be a guaranteed success. You can see stock purchases a little like gambling – the more you know about what you’re betting on, the better informed you’ll be about how things will change with the status of that bet.

Some people choose to consult a professional to advise them on what to buy; however, there is no way to predict the successes and failures of the stock market with absolute accuracy, and therefore it is recommended that you learn as much as possible about the market and make your own decision about which to invest in.

Bonds

A bond can be thought of as an I.O.U between the lender and the borrower. It is known as a fixed income instrument where the levels of interest are agreed between the investor (often a corporation, but it can be a powerful individual) and the organisation that requires money (often a company but it could be a state or municipality). This is a very lucrative way to invest money over a long time and a very secure asset to have under your belt. You get to set the rules – the date you would like the money, the amount of interest and when you will lend the money. The value of your bond will change in accordance with your preferences, and your credit rating will also be assessed. These are sensible options for those looking to build a strong and diverse asset portfolio – worth looking into if you have some cash to invest.

Certificates of Deposit (CDs)

A certificate of deposit, also known as a CD, is a low-risk financial investment that entails lending money to banks for a certain amount of time. This is a very safe investment and therefore, a very popular asset for many people. CDs are insured up to a certain amount so, unlike bonds, there is absolutely no risk that you could end up losing money as a result of your investment.

The interest rate of a CD will vary, depending on how long you are willing to lend money to the bank for. The longer the loan – which means the longer the bank has to play with your money in various well-informed investments – the more you’ll gain in interest once you get your cashback.

Art

Why would you not invest in something that brings a deeper meaning into the world? Regardless of the economy, work by a well-respected artist can be sold across the globe. Art is a brilliant asset that you can keep close by, or you can give it to family members to take care of.

When deciding what to purchase, there are many art specialists who can give you professional advice on what’s the best investment for the years ahead. Alternatively, you could buy a painting or sculpture from a recent graduate from a prestigious art school. If you decide to buy art from an artist who is not yet famous, it is important that you purchase something you genuinely like, because it is not guaranteed that it will become one of your biggest assets. However, this is where you can make the largest gains – with some paintings increasing in value by hundreds, thousands or millions.

Crowd-lending

This phenomenon has risen within the online trend of "crowdfunding", and this is also a philanthropic venture because while you are looking for an asset to accumulate, you can also make someone’s dreams come true. There are thousands of budding entrepreneurs or talented writers, artists and filmmakers who have everything required for a potentially world-changing venture – apart from the capital. This is where you come in. This could be an extremely valuable asset and it is negotiated on your terms between you and the entrepreneur, therefore you are able to agree on a return on investment that you are comfortable with.

This is a brilliant opportunity for those with the energy to invest in an exciting and dynamic venture. A word of warning, though – always enlist the help of a solicitor before signing a contract. There are plenty of scammers out there who do not respect you and are looking to take your cash. Beware these negative actors.

Your Own Home

The digital world has brought with it the rise of holiday rentals and the ability to sub-let parts of your property. First, consider this: are there any unused spaces on your land? An unused loft or a disused basement will suffice if you are willing to invest in interior decoration and ensuring all the technological necessities of the twenty-first century are present.

Individuals are now able to rent out spare rooms in top UK locations for thousands of pounds every month. If you don’t like the idea of sharing your house with a stranger, you can also list your whole home on a holiday rental site, and while you are away, you have the potential to earn the cost of your trip back, simply by letting another family stay there. If you use a registered site, this a very low-risk option because insurance is offered. It is worth considering the price required to use the property rental site because these fees can be substantial, sometimes as high as 30% of your perceived income.

Your Career

The economy can boom and dip, but investing in further education or fine-tuning your skills and passions is a worthwhile investment and one of the most valuable assets to have. The cost of education might seem a little steep, but this cost must be weighed against the potential to earn more money. In addition to the personal value that boosting your career will bring to you, you’ll be able to enter higher-level jobs with far higher salaries with further education behind you – an investment that can be a huge asset across your career for both your income and your happiness at work.

New Technology

There are a whole host of technological advancements that are ready to go ‘live’ - however, they do not have the funding to be brought to the market. This is a very popular investment for individuals who are seeking to bring something positive and exciting to individuals across the globe. From medical advancements to music software, there will be a new piece of technology that you will feel passionate about. This passion is extremely important when investing in a new asset: though, of course, you don’t want to be too emotionally attached to the investment and lose your ability to think about it rationally. However, an interest in the asset is highly advisable because it will motivate you to nurture it with greater care.

A New Business

Have you always dreamed of becoming an entrepreneur? Acquiring a business is one of the most common assets people in the UK possess. Where you start is up to you- you can purchase a business that is in its earliest stages or a successful business that has a few years in the industry. Alternatively, you can develop your own business idea and turn it into a valuable product or service, as with start-up ventures that are taking the UK economy by storm. Be brave, make the investment, and enjoy sitting on a growing asset that you can truly call your own.

There is no correct asset to buy and which purchase you make depends on the level of risk you are willing to take when you invest your capital. There are a variety of safer options, however, they may not achieve a high amount of interest or income. Purchasing a big asset requires a lot of research and thought and it is often advisable to seek professional advice before you buy anything