Banks and Building Society's or bricks and mortar UK only?

Question

Where would you put your money for the best 5 year return?

http://lawpack.money.msn.co.uk/landlords_buy_to_let.aspx

Answer 1

Traditionally, putting your money in Banks or Building Society's is for savings but if you buy houses its an investment for a home or to earn rent. In a sense, it is wiser for you to use you money to buy a house for a home or for rent, rather than putting your money in Banks or Building Society for a paltry interest and also running a risk of losing your money if things turn bad for Banks and Building Society. Rather, if you invest in a house, you can at least enjoy staying in it or to rent it in bad times. In the UK especially, where land is limited and scarce, demand for landed properties will always be in demand. I think in the next 5 years, properties will be in great demand, especially, when it will be hosting the Olympics in 2012. This is the time where the best of properties prices will be reached and then buying properties will be beyond the reached for most people.

Answer 2

I would say cash is king at the moment. I have a few properties the rents are rising with demand but if the properties go down much it will wipe out any profit in rent easily. You need a good deposit just for the rent and the expenses to break even with the morgage costs. Shares are starting to look cheap but not just yet and it may take 10 years to reap a big rewards. Sit and wait the storm out then get in fast. The economy is only going one way. For now

Answer 3

bricks and mortar all the way!

yes it may drop but thats when you get the bargains!!!

Answer 4

With the housing market, wanting a house isn't demand until you can put your hands on the money to buy your chosen property. At that point, it becomes effective demand.

Given the serious situation with the property market and the economy, which is still developing, I wouldn't think of buying for at least eighteen months.

Timing is everything, and the BOE wont allow the lending institutions to be as profligate as they have been in the recent past. So don't expect a repeat performance.

Until you feel the market is reaching the bottom, stay in cash, and don't trust those that have a vested interest in feeding you with bogus info.

Answer 5

House prices are falling, the buy-to-let market is allegedly failing.  Northern Rock fell, now Bradford+Bingley are in trouble....

      Buy a classic car!  You get to enjoy it, and if you buy the right car it will appreciate, and you will always be able to sell it.  Servicing, insurance and repair bills can be minimal.