Occasionally, we would have some spare lump of money that just sitting idly in the bank account. Although they might be generating some steady interest rates but there are always other options and investments where you can put the money to a better use. In the third Wealth Secrets issue of Money Magazine, Bryce Holdaway was interviewed on what he would do with a spare $10,000. Want to know where the experts are putting their money?
“When I first asked where I would put $10,000, I instinctively thought about how I could invest it into residential real estate. But the truth is that, while it’s possible to use the money as a deposit on a $200,000 property with use of lenders mortgage insurance – ie, borrowing up to 95% of the value – the reality is that you would still need to find a way to come up with the additional money required for stamp duty and settlement costs as well as being able to find a property at this price point that stacks up an investment-grade asset. After some careful thought, I came up with a more effective alternative that still allows me to keep the money invested in my preferred asset class.”
Click on the article to read what Bryce’s recommendation is.