5 Unusual Passive Income Streams

5 unusual passive income streams

Most people are familiar with the typical investment options, real estate (residential, commercial industrial or developments), below we have a list of 5 unusual passive income investments. Some of these you may have knowledge of, some you may have even invested in yourself.

1. Parking bays in residential or commercial buildings

Yes there is a decline in the number of cars being purchased or driven these days with car riding services rising in popularity however car park bays are still a very popular investment and one that can offer great returns. Depending on the area and city the demand for these parking bays is quite strong.

This is also a good way of getting into the property game as the capital needed to purchase isn’t as large as a residential or commercial property and the yields can be higher than these traditional property investments. Plus there is no need to call out the electrician or plumber if there is a problem with your property!

Another positive about this investment (rather than investing in property itself or some of the other options on this list) is there is a limited need for insurance. Aside from someone destroying your parking bay with a jackhammer, there is no need the usual insurance policies covering a typical passive income investment such as contents insurance or replacement cover.

The yield on these spots can be very impressive and there is also the possible of nice capital growth! Depending on your location, your parking bay could yield anything up to and above 10% per annum. The better the location, the more demand for the parking bays and the higher the price (and hopefully higher the yield).

Should you want to look outside the inner city, you can research up and coming suburbs or even areas of a city about to developed or situated close to new developments when looking at potential parking bay purchases. Other parking bay options also include airports, office buildings and industrial parks.

Chat to your local broker or agent for more on investing in parking bays. 

Pros of Owning a Parking Bay

  • You don’t necessarily need a large capital investment to purchase a parking bay. 
  • Offers the potential of both capital growth and strong and stable investment yields.
  • Some lenders will also provide financing for these investments

Cons of Owning a Parking Bay

  • If your condo or apartment block loses it’s or if there are significant renovations this could affect your income
  • Like a lot of property investments, if no one leases your parking bay there will be periods of no income.

2. Investing in thoroughbred racehorses

The investment in thoroughbred racehorse is an offbeat investment option, yet one that can also be lucrative. The options you have are purchasing a male (colt or stallion) horse for breeding purposes or the more popular option is a female (filly or mare).

If you have the capital (and access to experienced consultants) a stallion prospect is an option. Entering this industry you’d be looking to purchase a yearling colt (either on your own or in a syndicate) that has commercial stallion potential or if you have the capital (and the facilities) you might purchase a stallion (or a share in a stallion).

Given you are looking at upwards of $1,000,000 for a quality yearling with stallion potential (plus insurance, training fees, racing fees, etc.) you would want access to some serious capital before entering into the stallion game.

Should a proven performer be your preferable stallion investment, purchasing a successful Group or Grade 1 winning colt or stallion with commercial bloodlines can set you back low to mid 8 figures though the revenue a popular stallion generates can repay this 8 figure outlay pretty quick.

For example the two most popular (by stud fee) horses at stud in Australia are Extreme Choice and I Am Invincible. Their Australian stud fees $275,000 and $217,500 respectively with a live foal guarantee (this means you get your money back or a stud appointment next season if your mare doesn’t produce a live foal).

Assuming they serve at least 120 mares each for the breeding season (September to November) that’s an income to the stud of at least $33,000,000 for Extreme Choice and $26,100,000 for I Am Invincible. Now there are obviously a few expenses to take into account but you can see having a successful thoroughbred stallion is quite lucrative. That’s not even including the option of shuttling to the northern hemisphere for their breeding season (opposite time to the Southern Hemisphere season) where they could earn significant additional money.

This example is rare as only a very, very small amount of stallion even get to a mid 5 figure stud fee.

The more affordable option for thoroughbred breeding investment is through the ownership of a broodmare. You have the option of purchasing the horse as a yearling, as a tried horse or as a broodmare option. The better the breeding and type, the more likely the purchase price at auction, the better the racecourse performance (ie black type wins or even

Group or Grade wins) or the more impeccable the breeding, the more expensive the mare will costs at the end or after her racing career has ended.

Should you go down the path of a broodmare purchase, you might look for a reasonably performed broodmare with decent bloodlines purchased for low six figures and either breed her to an up an coming stallion at a decent price or (assuming the mare is accepted) taking her to one of the more pricier stallions hoping for a cracking yearling on type to take to

the sales. Assuming your broodmare produces say 10 commercial foals (throws healthy commercial types) with one or two black type horse or several city class horses, there is no reason why in this example you wouldn’t earn mid 5 to 6 figures profit on each foal.

Both the above examples are better case scenarios and a lot of people investing in thoroughbred lose money however get the right horse and a lucrative passive income stream awaits! 

Pros of investing in thoroughbred racehorses

  • A stallion or broodmare can breed for around 20 years (assuming good health and fertility)
  • Value can increase significantly if your stallion produces consistent black type winners or your mare produces a black type winner or performer.
  • Some companies will offer finance for thoroughbred purchase though the terms are shorter and more expensive compared to more traditional investment loans.

Cons of investing in thoroughbred racehorses

  • High amount of capital needed for your investment and there is every chance you could lose money on your investment.
  • Value can decrease rapidly if your stallion is not successful or your mare can’t produce healthy or commercial foals or offspring that doesn’t win.
  • Costs associated with thoroughbred ownership is quite high.

3. Ice vending machines

What is one of the most important ingredients for an awesome party? Ice! However getting ice isn’t always the easiest experience, particularly once the shops are closed. You might be lucky with an all night store or service station having ice for sale but that isn’t always the case. If you’ve got an ice vending machine close by then all your ice problems are solved.

Bags of ice have some of the highest profit margins considering you only need clean water and a plastic bag as your only materials. Depending on what city you live in you could be getting well over $2 per bag and looking at a profit margin of near 90% (assuming low finance or leasing costs). Even if higher leasing and financing cost ate into your margins

bringing them down to 70% on each bag, that is still sensational.

Location is the most important part to earning money from ice vending machines and finding the right location (that will allow your machine) could be tricky. An option could be to reach out to places like car washes or shopping centres where you might even be able to do a deal regarding leases through profit share.

Providing you’ve got the traffic nearby your ice vending machine (or machines) this can be a proverbial gold mine!

Pros of investing in ice vending machines

  • One of the best margins available for a passive income investment
  • Ice vending machines are reasonably priced (starting low 5 figures) and don’t take up a lot of room
  • Investment can be scaled once you’ve tested your first machine and found other suitable locations. 
  • Financing is available in most cases

Cons of investing in ice vending machines

  • Isn’t easy getting locations for your ice machines
  • Need sufficient traffic for the ice machines to be viable
  • Income stops if machine isn’t working or needs a part
  • Machines could be susceptible to vandalism

4. Breeding pure bred dogs

Similar to thoroughbred breeding above, breeding pure breed dogs can also make for a nice little income stream. For example pure bred British bulldogs can go for anything up to mid 4 figures and if you are getting four or five healthy pups that’s a decent passive income. Now vet bills (particularly for a breed like a bulldog) will take some of your profit it can be a nice little earner. Whilst this won’t make you rich this income will help pay some of the bills or even go towards building up the holiday fund! For a more commercial dog breeding option, greyhound breeding can be quite lucrative in countries like the UK and Australia. 

Pros of investing in breeding pure bred dogs

  • Lower amount of capital needed for your investment compared to other investments on this list
  • Most breed can produce up to 5 or more puppies per litter
  • Who doesn’t love puppies?

Cons of investing in breeding pure bred dogs

  • Vet bills can be quite expensive relative to your initial outlay
  • Some breeds need professional help (such as bulldogs) when giving birth
  • Demand may fluctuate given the high costs to purchase a pure breed
  • Some breed of dogs only have a 3-5 breeding timeframe
  • You will need to be on call and closely monitoring your dog and puppies after birth

5. Replica Famous Movie or Television Car

Think the original Batman television series motor vehicle, or even the Batmobile from the blockbuster 1989 Batman movie. How about the 1982 Pontiac Firebird Trans Am, also known as KITT the talking car? Who remembers the General Lee Dodge Charger from the Dukes of Hazzard? Or even the DeLorean from the Back to the Future film series? Who hasn’t dreamed that they were James Bond driving the Aston Martin DB5 as featured in Goldfinger or being B.A. Baracus driving the GMC Panel Van from The A-Team.

Replica famous movie cars are an interesting yet lucrative income stream. Cars are hired for birthday parties, for corporate events, for town or city parades, for sporting events, you name the event there is usually a demand for this.

This can be a great way to tap into a nostalgia type investment. 

Pros of Owning a Replica Famous Movie or Television Car

  • Value of the car should either increase or stay reasonable stable
  • One of the only car investments to provide an income
  • If you have handy car repair skills you might find a cheap car option to fix up
  • Some lenders will also provide financing for these investments

Cons of Owning a Replica Famous Movie or Television Car

  • It Isn’t easy obtaining either an original or replica particularly if outside the USA
  • Insurance costs would be higher than a typical passive income investment
  • With the older nostalgia cars parts are rare and expensive

We hope this list gave you some ideas for your own passive income investments or at least brought back some great memories when thinking of past awesome television and movie cars! Let us know some of the unusual passive income streams that you currently have or are looking to invest in.