Do you think buying properties is a good investment or saving money to earn interest in the bank?

Answer #1

Buying properties for others to rent? If so, I think you’d be better off to put money in the bank because you know for sure that it will gather interest over time annd always be there, but you cant be sure that people are going to rent from you and that you’ll make money that way.

Answer #2

I would say definitely properties. It takes effort and time to find a good property with a proper tenant, but if you can get in more than you have to pay on your mortgage or at least enough to help pay the mortgage you can make a large capital gain eventually on the property. As soon as I start earning an income I will start invest in properties. It’s not that easy to start of with, but if you put in hard work the returns can be massive, much more than you would earn at a bank.

Answer #3

I do agree with your views. Putting money in the bank to earn interest is better than having to look for tenants to rent a house. Quite logical.

Answer #4

Hi Irene, I am lucky enough to inherit two houses from my mother and this means it is free from encumbrances, no bank loan. I am thinking whether to rent it out or to sell. Thanks for sharing your views.

Answer #5

Hahaha. :D

Answer #6

Your welcome, If I had inhereted two houses I would sell it. I know that finding a tenant for your house is probably going to be too much effort and you’ll make more out of it selling when the market is good. I was referring to above when you are looking for properties to buy i.e. speculating with them. But think it through. Tenants can be really difficult.

Answer #7

Sell the property you inherited will get you a lot of $$$, hopefully quickly. But the housing market is well rather blah right now, so you won’t get as much as you might want to - and it could take quite a while to sell.

Renting can be quite a pain. But if you can find a good renter, you can make quite a bit of money off it. I hear horrible stories about having rentals, but what you don’t usually hear is about all the good renters. I know several people who own rentals, and they can be a very good way to pull in an income. And with not having any bank loan to pay off, its not as bad sitting on them waiting for a renter.

Answer #8

I agree with most of what you’ve said but actually banks aren’t THAT secure - think about northern rock. when they shut down, people lost loads of money - the maximum repayment people could get was about 30 grand. so if you invested any more than that then you’d lose it. just be careful with who you invest in, and if it’s a large sum then split it between several banks (y)

Answer #9

Here’s the thing. You’re basically asking is it better to have a business or to save money in the bank. Bank interest is not high. Especially not now. You will always be able to earn more money with property than in the bank. However, it depends on a lot of different things. What condition the houses are. Whether you feel capable to do the upkeep. I mean there are places that will do property management for you (of course for a fee or percent). You’re still earning income on the houses but they do all the work. There’s a lot of different options. I think you need to talk to financial advisors, people who are more familiar with your area and know a little bit more about money than the average person on here.

Answer #10

Sell…? I’ll finish the money in no time. LOL

Answer #11

Do these financial advisors charges fees? I have never sought the services of financial advisors before.

Answer #12

You’re right Emily, don’t put all the eggs in one basket. To be more secure it is good to invest in a number of banks.

Answer #13

Yes, they’re not free. But think of it as an investment. You wouldnt just blindly invest in the stock market. It’s the same thing. If you’re looking at businesses you want to be informed. You might even just want to talk to people you know first. Friends and what not who have businesses, investments and properties.

Answer #14

Yes, I think buying property is the best investment option as the price of property is increasing incredibly day by day. Apart from this, people may be needed some best quality conveyancing quotes for property transaction so, they can prefer bestconveyancingquotes.

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