Savings vs Investments

Investment properties

When looking atinvestment vs savings, you need to know what you are dealing with. While there are many investment opportunities available, a very popular one is investment properties. Investing in real estate is considered relatively safe, and with the market making a come back, it might be the right time to invest. When you make the decision to invest in real estate, there are some things you want to make sure of.

• You will be responsible for paying for reports for soil and geography as well as white ant reports and building inspectors.
• Be aware of any easements on the property and always obtain approval if you plan to do any improvements.
• Get a property valuation from an outside source (not your lender) to ensure you are paying a fair price.
• When making a budget, plan for any repairs or replacements. The appliances may not work and need to be replaced, that is a cost you will have to cover.
• Shop for insurance and make sure you get the best coverage. Some insurance policies cover appliances, look into those and get the best deal for what you need.
• Being a landlord can be difficult, so if you do not want to take on this responsibility yourself, hire a property management company. If you plan to be the landlord, know the rules and laws of rental properties.

Here you can see a real estate investment is a great option when looking atinvestment vs savings. You just want to make sure you do your homework, as a bank CD (Certificate of Deposit) may be a better option.

Bank CD’s

When weighing your options betweeninvestment vs savings, you definitely want to look into bank CD’s. Following are a few things you want to consider.

• Are the interest rates variable and what are they currently listed at?
• What is the term of the CD? Most are several months in length.
• Are the funds accessible if you need them?
• How long will it take the bank to get the funds if you need them?
• Will you be charged a fee if you withdraw your money early?
• If interest rates go lower, will your bank have the ability to end the term of your CD early?

These are a few of the things you want to think about before opening a bank CD. Now you know you have options when consideringinvestment vs savings.