I think one of the most fundamental decisions any property investor has to make is whether to invest in property or term deposit, i.e. “how much more will I make with my money by taking the risk and buying a property and is it worth it or should I leave the money in a term deposit?”.
Is there a calculator that can help investors to make the tough decision? Yes, Investment Property Calculator offers property calculators with a built-in function to compare property and term deposit. The comparison is not for one year but for 30 years. Investors can choose to see the difference from year 1 to year 30.
It simulates how much you can earn if you put the down payment plus the holding costs (for whatever years set by the user) plus the selling costs into a term deposit and compares that amount with what you would get by buying an investment property.
When you purchase the Standard Investment Property Calculator, you will be able to compare an investment property with a term deposit.
If you purchase the Professional Investment Property Calculator, you can compare property with term deposit, or property with shares, or property with the combination of term deposit and shares.
I reckon you should buy a property. Money in the bank means you’ll be paying higher tax. Negative gearing could the way to use the governments money and the tenenats money to make you money in the longer term!
I agree with Tricia on this one. While a term deposit might be a safe, easy option, if you are willing to do your research properly to find a good opportunity then property investment will win hands down.