Here are some income producing assets that generate cash flow and appreciate with time.
People invest in assets with the sole aim of growing their investments as well as earning an income.
If an investor is able to know that such investments won’t appreciate, there’s no point tying down valuable resources and time.
Consequently, we’ll focus on income generating asset ideas that appreciate. This is aimed at helping you find reliable investment opportunities to grow your net-worth.
Without further delay, let’s get down to business!
If you are interested in assets to buy while in your 20s, here is a guide.
9 Income Generating Assets Ideas
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The Stock Market
Stock market investing is a time-tested method of income generation. It ticks all the boxes by appreciating over time, as well as being an income generator. This asset is reliable because it is based on the faith that it will become profitable in future.
So, as a stock market investor, you are buying the shares of existing companies. As stocks appreciate, you get dividends as income.
However, it’s important to note that stock market investing is risky business. Hence, self education is very important.
You can also pay a stock management firm to handle transactions on your behalf.
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Peer to Peer (P2P) Lending
This is another viable income generating asset that launched in 2005. P2P lending is a creative way to lend money to entrepreneurs to start a business. But how to you meet up or find such persons? A peer to peer lending website provides the platform. It also sets the terms of such transactions.
Here, you only need to open an online account (same as the borrower).
After completing all necessary registrations, the money is deposited into a dedicated account. This is then disbursed to the lender with returns accruing to you.
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Create a Royalty Generator
Royalties are unique and effective income generating assets. These are even more potent with the wide reach of the internet. So, how do you go about this? By creating something people need. There are several examples.
However, a few include music, artworks and photography. Whenever any of these are played or downloaded, some proceeds go to you. These are called royalties.
The advantage of royalties lie in the fact that you only need to work on a project once! However, such project needs to be unique and desirable to attract demand.
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Mineral Estates
A mineral estate or right gives you the rights to extract mineral from specific plot of land. There are tons of precious minerals beneath the earth’s surface. Having a mineral right gives you the exclusive ownership over any minerals beneath the ground.
However, you don’t need to worry if you have no capacity to mine such yourself. There are mining companies you can enter into agreement with. These companies pay you royalties for minerals extracted.
So, imagine that oil is discovered within your mineral estate. The feeling can be indescribable. Here, you don’t only get to earn, but such asset instantly appreciates!
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Growing Black Walnut Trees
Black Walnut trees are among the most valuable hardwoods. This is used for a range of products ranging from furniture and floor finishes. But there’s a catch; a sizable land. If you have this, you only need to purchase the seedlings for a few bucks.
With time, this asset appreciates. It also gives you a steady income stream. For a consistent stream of income, the trees can be planted in such a way that there’s always a steady supply.
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Real Estate Crowdfunding
This is another asset category that can be invested in. With real estate crowdfunding, you are able to diversify your investments.
Also, you don’t need to concern yourself with having to develop or sell of properties. A lot of companies exist to handle the technicalities involved. All you need to do is channel your investments into a fund provided by them. All deals are curated and dividends paid accordingly.
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Making YouTube Videos
Google has provided an income earning opportunity for many. It all begins by uploading videos that showcase your expertise or skills. The idea is to have a lot of people subscribe to your channel.
As you grow more popular, businesses notice and request to embed their ads on your videos. Through this strategy, you get to earn passive income per click.
The more people get to click on such videos, the higher your income potentials. This is an asset that earns you money even while you sleep. All you need to do is continue churning quality content for your growing audience. Such content should of course be interesting.
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Investing in Storage Facilities
This is another income generating asset you can invest in. The good part is that a growing number of people are finding it highly desirable. There are several types of storage facilities you can make.
However your choice is determined by your preferences. With storage facilities, you attract consistent income. Also, you get to auction properties of persons who default in payment.
As things kept in your storage continue to remain, the owners continue to pay the rent charges. This earns you steady income and can appreciate depending on the economic conditions.
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Build a Website or Blog
This is an online asset that ticks all the above conditions. Acquiring the skill to build and maintain a website is necessary.
In addition to that, a lot of work is required to constantly create and update content. You should have a target audience you intend to reach. It’s best to focus on your area of competence.
By so doing, you are able to generate just the right content that will attract your audience. This audience remains loyal if they enjoyed their last visit.
These are some great income generating ideas that appreciate. The only thing you need to do is fully focus on doing the work required. You also need to choose an area you’re most proficient in. This gives you a better chance of excelling.
