How does Property Investment compare?
Recently we looked at Return on Investment (ROI) and its importance in property investment. By using ROI we can get a quick assessment of any property investment. We can then use ROI to compare against other property investments and also other investments in general.
In this blog we compare property investment to banks and building societies to see the difference in earning potential.
From this table we can see that by investing in property we can easily beat the poor returns the banks are offering. In fact, if you take into consideration inflation, we are actually losing money if we choose to invest with the banks.
Now this may seem great but there is another benefit to investing in property compared to banks – you get to own the property. So not only do you get a better return you also own a property portfolio that in time will increase in value.
Remember, with all investments, even property investment, there are risks and it’s important to reduce them as much as possible but there is also a huge risk in letting your wealth dwindle away in the banks.