Investing in Shipping Containers?
If you have investments in banks, you know how low the returns are currently. Just a
Shipping Container Investing Basics
The basic process or procedure is that you purchase shipping containers through an investment company. The company then leases them out to shippers and transport companies. The investment company then pays you a percentage of their leasing profits as a monthly or quarterly return on your investment. The shipping investment group handles buying all the shipping containers, renting or leasing them out, getting them to the right location, insurance on the containers, and all other necessary processes for the shipping process. All of their operating expenses including their overhead of offices, salaries, payment processing, bank costs, etc. are taken out of the leasing income before the profits or return on investment (ROI) go to you, the individual investor. Depending on the leasing, the returns allegedly are 20% percent but there are no guarantees and you might get zero.
Costs of Shipping Containers
The cost to purchase a shipping container is approximately $4,100 Australian dollars depending on the current exchange rate. The price goes down if you buy 5 or more containers. This price is for a standard shipping container of 13 meters or 40 feet. This is the most common container, the ones that are used throughout the world to move all sorts of different materials. The containers usually are in circulation for a term of about 15 years. The investing group handles collecting all the rental payments, processing the payments, insurances, and all the other expenses related to leasing out the shipping containers. After three years, it is said that you can sell back the container to the company at the original sales price. You may also be able to depreciate the shipping container on your taxes for additional monetary benefits.
Concerns with Investing in Shipping Containers?
You need to be aware that you are purchasing a tangible item or asset, similar to buying a car, rather than buying shares in stocks, bonds, or a brokerage account. Because this is not the traditional type of investment, there is no regulation of this enterprise by national securities commissions and no insurance on it either. And you really do not know that you are actually buying a shipping container and not buying into an investment scheme or even a scam. Since most of the shipping container businesses are located in foreign countries, if you don’t receive your investment payments or they suddenly stop, it may be impossible to get payment. Moreover, you may have no luck in getting back any of your initial investment either. Remember the ever-important purchasing advice – “Buyer Beware”.