An investment with set returns although safe comes at a price.
The price being no chance of greater returns...a ceiling on return.
I guess its all relative to what you want.
bank term deposits....
Not a bad idea for those that cant be bothered looking at alternatives but seriously...... why sit your money in the bank?
these 12 month bank depositors are just that...
they are parking their cash as they dont have a clue as to what to do with it.....its a short term investment solution until something better comes along......and thats fine but to me its just delaying your next move for no reason.
I just dont see any attraction.
Id almost rather make a negative return on an investment that has some chance of capital growth over the long term..... something bank deposits will never give.
Plenty argue to wait 3/6/12/18/24 months then get back into property......why?
At that point in time I rates may start to head north and your also competing with every other term depositor looking for an asset.
sheep following sheep.
Just as iron ore was a great run for the sheep, just as uranium was the sheep runner before that, just as agricultural fertiliser is one of the later sheep , just as gold now is and cash term deposits.
Its just the continual cycle.
Those that make the great returns, and obviously its a very small amount of investors no matter what the asset....they dont buy with the herd.....they buy when the herd is selling.
Its really quite simple.
Sure you can wait 6 12 18 months but one thing i do know is trying to pick the bottom is never a good idea unless its that of a nice looking lady.
