There has been outcry in financial TV news and online reports suggesting investing in shipping containers which will offer a sure return of 12% annual interest. People only focus on bank deposits and term insurance policies as a source of investment. But with careful planning and deep analysis one can easily invest in shipping containers and earn decent profits like in Davenport Laroche reviews.
What it takes to invest in shipping containers?
According to established shipping companies an investor has to invest a sum of 4,100 USD and can buy a 40 foot shipping container and lease or rent it out as a return on investment. The life span of the container is 15 years and you can expect returns for the whole period. There are no other expenses like processing fee, dock duties or management fees. A company gave out a deal that it would offer 12% interest per annum upon purchase of five containers. Then it would give a discount of 100 dollars on each container. This kind of lease is called “Fixed plan lease” where the buyer has to be paid with cash.
In the other kind of lease called “Aggressive deployment plan lease” the leasing company leases the containers which can yield you higher profits on short term. But the income is not fixed and sometimes there can be very low returns depending on the market ups and downs. Also in some cases their might be depreciation allowances of minimum 10% depending on the contract. This is a viable option if the leasing company is a reliable one. You can just invest once and wait for returns to come.
What problems can one face with shipping container investments?
- According to some experts it is an unregulated investment. There are no government or shipping authority regulations with respect to containers as it a physical asset. It means it is subject to market fluctuations and seller owned regulations.
- If the buyer wants to sell the container any time before the contract he can expect only the market value. The then and there price of the container will be charged and paid back to the investor after examining the condition of the container.
- The investor cannot view the container in between the period. This means because the asset has depreciation value you will be paid only the deducted value.