Property Investing vs Savings
Updated: May 15, 2020
Have you been debating over investing in property vs saving your money in the bank?
Let's explore the facts together
CoreLogic, largest provider of property information, analytics and property-related risk management services in Australia and New Zealand, released this chart summarising the recent price correction. It is a chart which included the recent price corrections.
Looking at Melbourne, prices has dropped 11.1% since peaking in late 2017. Despite this, it is still 23.5% higher than what it was 5 years ago.
What does that mean?
Imagine, if you had $50,000 5 years ago, and you put that into a savings account, it will become $52,550 in 5 years, at a very optimistic average of 1% interest pa.
If you had invested this $50,000 into property 5 years ago, your $50,000 would have turned into a $61,750 investment. I.e., the $50,000 would be worth a massive $9200 more!
So, would you invest in property? If you have the serviceability, why not? But you need to get the right property at the right location.
Have a chat with us. We can help you achieve your real estate investment goals.