/* Magenet Universal Plugin code */ Philin's Blog: Buy Property to Beat Inflation

Saturday, March 12, 2011

Buy Property to Beat Inflation

If you have disposable income and savings in the bank, it is better to invest in properties than to park your money in Fixed Deposits or put in the savings account. Using the rule of 72, if the inflation rate is 4% per year, then it takes 72/4 equals 18 years for your money to become half its value. Prices keep increasing and the cost of living keeps rising due to inflation. Hence, it is better to invest in properties to get rental income and to get capital appreciation as time goes on.

For instance, if you buy a property for $160,000.00 and rent it out for $800 a month, your returns would be 6% compared to putting it in the Fixed Deposit for only 2.75%. Just my 2 cents.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...