If You’re Fed Up With Low Interest Rates, Florida Property Can Be A Nice Little Earner

Florida PropertyIs your savings account earning enough interest?

The reality for most people today is that savings paying back just 3% interest are 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.

If you are investing your hard earned cash in a savings account paying just 3% interest the only thing that will happen is that you will effectively be losing money.

Nothing depresses me more than the thought of all those nest eggs sitting there in people’s bank accounts being steadily eroded by the silent killer I talked about recently.

That silent killer is inflation and with the cost of goods and services rising, only today I was listening to the news and hearing about another 6% rise in rail fares.

So straight away if other goods and services are rising at the same above inflation rate, then that 3% is immediately taken away and you have just lost 3% of your purchasing power.

So where do you invest your savings to avoid wealth erosion?

It may not come as a surprise that investing in Florida property can provide a return on investment that will easily outpace any return you are likely to get from a savings account.

While I was out on a viewing trip to Florida this month I noticed in one of the newspapers that the average price of a downtown Miami Condo increased by 9.1% to $404,927 from $371,205 a year earlier.

The article also pointed out that average rents had climbed 4.4% annually.

Compare this to the 3% interest you might get from a typical ISA and it is easy to see why investors are increasingly looking to Florida to generate the kind of returns that make saving worthwhile.

The best thing about the Florida property market at the moment is that investors are able to invest at the bottom of the cycle. So your typical 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.

Are you satisfied with the interest on your savings or struggling to the right place to invest? Please leave your comments below:

Kind Regards

Loxley McKenzie
Managing Director