I am a big fan of regular income investments, that return income every month or more regular. Most stocks and funds distribute bi-annually or even annually. While this is nice I enjoy the psychological impact of receiving money every month or even more regularly. Having this regular income allows you replace or supplement your salary for your regular expenses.
Here I’m going to put together a list of regular income investments that I have investigated, researched or invested in. There are many different asset classes that can provide regular so I will split the investments into categories. As always this doesn’t constitute financial advice, always do your own research into whether a particular investment is right for you.
REITs (Real Estate Investment Trusts)
REITs are real estate investment trusts, which commonly invest in various types of commercial real estate. These could be retail, industrial or office buildings that are rented out for long term leases. These trusts allow you get in on the commercial property action without needing hundreds of thousands of dollars to invest. You can get regular income from rent paid by the tenant. These leases are generally long term (5+ years) meaning the income is more secure than with residential property. Also with REITs the portfolio is diversified across many properties. Here are some of the REITs I have invested in:
APN Property Fund
APN Asian Property Fund
Charter Hall PFA Fund
Shares and Managed Funds
Peer to Peer Lending
Peer to peer lending has exploded in popularity in the last decade. Investing in peer to peer lending gives you access to regular monthly income from the loans you make to other people.
RateSetter
RateSetter is probably the most well known peer to peer lender in the Australian market. It has been operating since 2014, facilitating loans between lenders and borrowers. I have written two posts covering my experience with RateSetter, original and the latest update.