The silent killer is inflation with the cost of goods and services rising, including another 6% rise in rail fares this month.
(PRWEB UK) 24 August 2012
Loxley McKenzie, Managing Director of property investment firm Colordarcy.com said, “The reality for most people today is that savings paying back just 3% interest is not meeting the needs of individuals. Those hard earned savings need a place where they can grow and provide either a nest egg or a boost to retirement income.
While banking is becoming a lot easier for us – we can even move money around or pay bills via an app on our smart phones or tablets, the reality is that banks are failing their customers in one major area – return on investment certainly if we look at this latest news.”
According to analysts at Colordarcy, if investors are putting their hard earned cash in a savings account earning just 3% interest (Source:AOL Money) the only thing that will happen is that will effectively be losing money if inflation stays as high as it is.
McKenzie added, “The silent killer is inflation with the cost of goods and services rising, including another 6% rise in rail fares this month.
If other goods and services are rising at the same above inflation rate, then that 3% is immediately taken away and the money has just lost 3% of its purchasing power.”
So where should people be investing their savings to avoid wealth erosion?
According to analysts at Colordarcy.com, investing in Florida property can provide a return on investment that can easily outpace any return from a savings account.
For example, the average price of a downtown Miami Condo increased by 9.1% to $404,927 from $371,205 a year earlier while average rents had climbed 4.4% annually (Source: Miami Herald 2 August 2012).
Compare this to 3% interest from a typical ISA and it is easy to see why investors are looking to Florida to generate the kind of returns that make saving worthwhile.
McKenzie added, “The best thing about the Florida market at the moment is that investors are able to invest at the bottom of the cycle. So a property investor can buy a tenanted apartment and generate an income from day one.
There is no need to worry about lengthy void periods with demand high and most of the quality developments on offer to foreign investors coming fully managed.
So if you are looking to build a nest egg rather than have it raided by inflation, in my humble opinion your best opportunity to maximise growth is to look for property investment opportunities in Florida.”