Having a healthy nest egg is a fortunate position to be in. However, watching it accrue minimal interest in your savings account can be hugely frustrating. You might crave for your savings pot to work more aggressively for you. This means that you will need to be more proactive with your cash and be willing to take more risks with your finances. For many, the best investment for your cash long term is to buy a second property. But, in these volatile financial times, is bricks and mortar still the finest investment for your savings pot? Read on to find out.
Landlord
If you are seeking a long term investment, you might be keen to become a landlord. This doesn’t have to be instead of your full time job and can be an effective way to supplement your income. You need to ensure that you can purchase well, in the right location and for the right price. Check out the property price history of the location you are looking to purchase in. If the house prices have risen consistently over the previous five years, then the chances are that you have a safe investment on your hands.
When looking for tenants, vet them well and ensure that they sign a contract before handing over the keys. When looking at your rental figures, ensure that the rent you charge is reasonable for the property type and location, and that the yield covers your mortgage and leaves you a little extra. If you aren’t a big fan of being woken up in the early hours because of a broken boiler, you may need to instruct a property management company to act on your behalf. This means you can be hands off and still see the money roll in.
After a decade or so, you can assess your property’s value and you can decide whether or not you want to cash in and pocket the profits.
Alternatives
While property is a sound long term investment, you might want to have a go at a more short term winner. Trading with Bitcoin robots like Bitcoin Era can be terrifying; however, bitcoin can be a lucrative way of making money, even if it is high risk. You’ll need to have nerves of steel and you need to keep an eye on the cryptocurrency markets hourly. Some of the best investments and profits are made over the course of a day. While the returns can be high so can the losses.
Alternatively, you could opt for a medium risk investment. By investing in wine, antiques or art, you can have fun while developing a collection in your chosen field. If you are partial to a tipple, purchase a case of a highly sought after vintage and store it. Over time, it will become scarcer and therefore more valuable. The same goes for works of art, high quality sculptures and antique pottery. Buy well, keep your items safe, and think long term. When you are ready, you can sell up and pocket the return on your investment.
While property is an excellent long term investment for your cash, it isn’t the only option that you have. Instead, consider a range of investments and spread the risk to maximize your return.
