Thursday, 24 October 2013

Investing to Generate Revenue From Income Producing Assets

When investing to generate a steady income, investors intend to use the interest or returns from their investments, to supplement their earnings. Nowadays, there are a number of opportunities for investment-seekers to invest in, that have proven to generate a dependable residual income; even through the troubling times. In most instances, this involves either buying shares in a company that has demonstrated a solid record of income with consistent dividends or by investing in an income producing asset, like shipping containers.

The most popular method of investing in income producing assets is to invest directly in a profitable and well-established sector, like the global shipping container industry for example. This approach requires investors to involve themselves in the Buy-To-Let (BTL) market, which includes buying a property (like a cargo container) and renting it out to tenants. In this instance, the tenants are shipping companies and the shipping container investors (or landlords) generate income from the monthly rental of their shipping containers. This residual income is earned through institutional and commercial leases, which provide a guaranteed and clear rate of return for a fixed term.

For less of a direct involvement in the Buy-To-Let market, some investment-seekers prefer to invest in shipping containers through a maritime asset fund. A maritime asset fund offers a means of buying into an established shipping container fleet as part of a collective group of investors, who partner with an asset management company like Pacific Tycoon that owns shipping containers, and rents them on a regular basis to international manufacturers and global shipping industry leaders. Because this approach combines the rewards of an income producing asset with the market guidance of a proven industry leader, it is increasingly becoming one of the most popular options for investors.

Investments that are structured to deliver a steady return, often provide the foundation for an investment portfolio that is intended to supplement an investor's income. This approach to investing is preferred by those who need the assistance of an income producing asset, to maintain their lifestyle during a period of unemployment or retirement. Because investors are dependent upon the performance of these investments to provide long-term revenues, it is wise to consider the investment options that offer the least amount of risk exposure, and provide returns that accommodate for rising inflation.

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