Following the financial crisis of 2008, cash savers have been hit hard. Interest rates are at their lowest for 300 years, with no sign of any improvement for years to come. For those reliant on cash savings for a monthly income, things are looking particularly bleak.
In the short term, a deposit account may be a safe haven for your money, but over time, cash saving will almost certainly leave you with a loss, as inflation swallows up the value of the money you’re trying to save.
So what’s the investment answer?
Assuming you have a juicy £100,000 to invest, you do have other options. Divide that sum between what you’ll need short term, whilst locking the rest into medium term investments. Both strategies will go towards providing you with a monthly income.
Global Equity Income funds provide twice the return of cash, and corporate bond funds will generate about 50% more monthly income than cash savings. However, these come with a level of risk due to fluctuations on the stock market. The alternative? Well, crowdfunded property investment, of course!
Whilst there is always risk on investing money anywhere, we remove many of the uncertainties associated with property investment, and offer consistent, predictable returns via simple, transparent investments suitable for all levels of investor.
What’s more, at The House Crowd, we offer rates of return, both equity and P2P, that are extremely attractive. Our crowdfunded property investments typically offer 9.5% gross yields fixed for five years, or 10% or more per annum on our development properties.
Along with offering more potential for profit, and a preferable alternative to seeing your savings fester sadly in a stagnant savings account, our model is inarguably a much more interesting and engaging way to manage your investments. The House Crowd is unique in offering both equity and peer to peer secured lending and a range of investment types and terms. This allows you to diversify whilst holding your portfolio on one, easy to manage, trackable platform.
It’s always a sensible move to get advice from an independent financial advisor before investing. A professional will be able to review your needs to ensure the portfolio you choose is of the best quality to offer you the best returns. However, whichever way you swing it, we’re confident that our crowdfunded property investment strategy is the way forward to seeing your money grow!