Tradefair & Financials
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Option A. Would you consider investing it in a house right now for that exact ammount if you had a certain long term tenant paying you a present net yearly rent of 5.5% and incresing with inflation over the 5 years. BUT with little expectation of any capital growth in the property over the next few years at least, but maybe increasing over the 4th and 5th year.
Or, option B would you keep your money in the bank with just over 2% net annual interest at the moment but with the liklihood that interset rates with increase over the same 5 year period of your investment plan.
Or is there a third option.
Or, option B would you keep your money in the bank with just over 2% net annual interest at the moment but with the liklihood that interset rates with increase over the same 5 year period of your investment plan.
Or is there a third option.
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I would appreciate advice on the likely value of both investments in 5 years time.
A. 5 years rental yield plus or minus the new capital value of the house in 5 yrs time. B. 5 years of net savings interest ( estimating at what rates will increase to over the 5 years )if all the 100,000 is kept in the bank. |
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(Ignoring the scaremongers crying about currency devaluation) I would put it into a 4%+ savs account for a year and see what happens. Wouldn't buy a house just right now.
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Invest in some shares & a commodities ETF or two.
Investing in tangible assets like oil, gold, silver, corn, and soybeans can offer diversification benefits that can traditionally be reaped when other securities markets are performing poorly. Commodities can also provide some protection from inflation. stocks like UU, SSE & AV pay a good dividend http://www.morningstar.co.uk/uk/etfs/etfsolutions.aspx?docid=324219 http://markets.ft.com/tearsheets/performance.asp?s=UU.:LSE http://markets.ft.com/tearsheets/performance.asp?s=AV.:LSE http://markets.ft.com/tearsheets/performance.asp?s=SSE:LSE http://markets.ft.com/screener/customScreen.asp |
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BEAUTY KILLED THE BEAST
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Third option is put your money in gold, silver, oil and other precious commodities.
Why would you even think of putting it in the bank when the rate of interest less than the rate of inflation? No need to tie it up for five years, when housing and stocks bottom transfer your wealth then. I think this could happen in the next 3 years. |
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Depending where you are, you can buy a terraced house for about 60k, tickle it up and you can get easily achieve 450/month rent. people will always want to rent this type of house, and can it go down much in value?
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just stick it in an investment fund. up to you how much risk you want to take, you can just go for a "very low risk" one and make miles more than you would keeping it in a bank or from buying property.
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