Although they both offer a return on your money, saving and investing in overseas property each have their pros and cons. If you have been working on your finances for a while and are looking for ways to make a return on your money. The above are two popular options, and it can be hard for you to choose which is better.
Before we head down to analysing the two. Saving is the less risky route since the amount in your bank is least likely to change irrespective of the currency rates. However, the interest rates are usually low, and it may take decades for you to get a notable return on your money.
On the other hand, investing in overseas property guarantees higher returns. However, it is also risky because the market rates don’t always go up.
Are you stuck wondering which of the two is most suitable for you? Below are the pros and cons of savings as well as investing in overseas property. By the end of this article, you will have a clear picture of which is the most suitable choice for you.
Savings Versus Investing in Overseas Property
Let’s Start with Savings:
1. You will Accrue Interests over Time
One of the main benefits of savings is that the interests will accrue over time. As long as you are patient, you can be assured of getting a return on your money.
2. Your Funds are Readily Available
Unlike an investment, your savings will always be readily available for withdrawal. Should you need cash at any time, all you have to do is head to the bank and withdraw.
3. Comes in Handy during Emergencies
Should an emergency arise, you can turn to your savings for financial relief.
1. It can Take You Years for You to Make A Bigger Return on Your Money
The biggest downsides to savings are the interest rates. In most financial entities, these rates are usually low to the point that making a significant return on your money could take forever.
2. Some Institutions Charge Fees for Their Savings Accounts
Some institutions might charge you some fee for having them hold your savings. Making it hard for you to make a return on your money.
Investing in Overseas Property:
1. Access to A Holiday Destination 24/7 Free of Charge
We spend lots of money on accommodation when we go on trips overseas. But, as long as you invest in property there. You will minimize expenses by having 24/7 access to a holiday destination at no cost.
2. Rent the Property
In case you don’t wish to reside there, you could rent the property at a higher amount. You will, therefore, get rental income at the end of every month, making it a great way to get a return on your money.
3. Purchase property at a Low Value and Sell it at A Higher Value
The why purchasing property overseas is an excellent investment is because you can buy it at a low value and sell it at a higher one. Property appreciates with time. The earlier you purchase it, the more it appreciates.
1. You will be Responsible for Maintenance Costs
Though a great investment, you should know that you will be liable for all maintenance costs.
2. The Rental Income might be Low during Off-Peak Seasons
At times, the rental income derived from your property could be low during off-peak seasons.
The Bottom LineIf you are looking for a return on your money, you could either save it or invest in overseas property. If your goals are short term, saving could be the ideal choice. However, if you have long term goals, investing in overseas property could guarantee higher returns. For those finding it hard to choose, you can do both.