You work so hard for your money, it is after all not very easy to earn. What’s harder, however, is setting aside money to put into your savings so that you could be prepared for the future. That does not end there. Saving money is not the toughest part of being financially stable and secure in the future.
The best move to make in terms of your finances so that you would be financially independent in the future is to put it in investments. A savings account does not simply work because you would just be parking your money in a stagnant state.
Yes, a bank may promise you annual interest incurred but those interest rates do not necessarily catch up with economic factors such as inflation and such.
The best way to reap the benefits out of your savings is to put it in investments that could earn more than the annual inflation rate, that way, you would be able to beat the economy and grow the value of your money and not just simply the amount.
Investing in Cars to Move your Money
When you invest your money in buy to let cars, you would be able to own cars or units that would be leased off majority to people who want to lease out cars but have a bad credit history.
You would be named as the investor of the car and you could get claims from repossession should the company gets bankrupt, but the beauty of it is that you do not have to do anything in terms of operations, meeting the lessee or act as a lessor or anything that would maintain the upkeep of the cars in your name.
Because most of the targeted lessees are in bad credit standing, a higher interest rate can be charged per lease, giving you a high percentage of return for your investment.
You could be able to invest a minimum amount of £7,000 and earn a minimum return, but of course, investing a higher amount would equate to greater values.
Return on Investment (ROI) on $100,000
The cost of one unit is $14,000. If you have $100,000, you would be able to invest in seven units. Meaning, you would be the investor of seven cars to be leased out to different people in a span of two to three years.
For thirty-six months, you would receive a monthly payment just so you could get your investment back. Meaning to say, in a short span of only three years, you would already be able to get your ROI for $100,000.
For the returns, you will receive a final gross payment computed with an average of around 11% annual rate – a huge difference from the yearly inflation rate of around 1.9-2%.
Compared to putting your lump sum money in the bank and earn just a bit more or sometimes even lower than the annual inflation rate.
The returns from buy to let cars is so much greater because it increases the value of your money in a short amount of time even taking consideration the rate of inflation per year.
Low Risk, Light Commitment, High Rewards
There is a lower risk for the loss of capital compared to other investment channels because you would be able to request for the repossession of the vehicle under your name should things go south.
The proceeds of the sale from the repossession would, of course, go to you. It also has a lighter commitment because the investment offers a higher return percentage from the average, but at the same time, it also only takes up three short years.
Unlike with other investments that you would need to put it up for long-term uses of your money such as retirement purposes before it could earn a hefty sum for you to enjoy.
The average 11% per annum is actually on the higher end of interest percentage earnings when you compare different investment channels available.
It is one of the best investment scenarios wherein there is a minimal risk but the rewards are great.
You Sleep While your Money Works
The best kind of investment is one that would not require for you to continuously manage it from a day-to-day perspective.
Well, how about the kind of investment that you do not need to manage at all? Once you give your investment and the units are ready to be leased out, all you have to do is wait for the money to arrive in your bank account every month and that’s it!
It is one of the easiest investments available in the market today and passive income is the best kind of income, right?