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Where to put cash deposit for a rental property
05-25-2020, 06:27 AM
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#1
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Dryer sheet aficionado
Join Date: May 2018
Posts: 27
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Where to put cash deposit for a rental property
Hi,
Im just starting. I just saved some buffer, and I will spend another year saving more of that FUM. And...
After that I want to save a cash deposit for a rental property. This will take me 3-4 years. Where should I consider putting this money for a such a short time? Savings account is 2.2-2.4%. Our state bonds are 0%. Im afraid of American& European (close to 0% anyway) bonds because it is to much money printing. High yield bonds have collapsed.
So Im basically stuck. 3 months ago I would put this money in state bonds as they were still yielding something. Now I really dont know. Do you guys think it will be easier in one year?
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05-25-2020, 07:17 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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Quote:
Originally Posted by henny-penny
...Savings account is 2.2% - 2.4%....
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What's the matter with 2.2-2.4%? from what I can see it looks like that 2.2-2.4% would at least be keeping up with inflation in Norway.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-25-2020, 07:47 AM
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#3
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Dryer sheet aficionado
Join Date: May 2018
Posts: 27
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Quote:
Originally Posted by pb4uski
from what I can see it looks like that 2.2-2.4% would at least be keeping up with inflation in Norway.
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You would be happy with that?
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05-25-2020, 08:38 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,281
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Just saw poster's location. "Never mind"
Emily Litella
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
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05-25-2020, 08:58 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Quote:
Originally Posted by henny-penny
You would be happy with that?
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If you want a higher return you'll need to take on more risk. Many are reluctant to take much risk with money you'll need in 3-4 years. On the other hand, you don't "need" the rental property, so you could take on a little more risk and try for a better return, knowing that you might lose some money on the investment and not be able to buy in 4 years.
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05-25-2020, 09:30 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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Quote:
Originally Posted by henny-penny
You would be happy with that?
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Quote:
Originally Posted by RunningBum
If you want a higher return you'll need to take on more risk. Many are reluctant to take much risk with money you'll need in 3-4 years. On the other hand, you don't "need" the rental property, so you could take on a little more risk and try for a better return, knowing that you might lose some money on the investment and not be able to buy in 4 years.
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^^^ This. It all depends on how much risk you are willing to live with... higher risk/higher reward. Most people for a short term goal like saving for a down payment on a property, don't want to see their savings go down because the market has taken a dive.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-26-2020, 02:26 AM
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#7
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Dryer sheet aficionado
Join Date: May 2018
Posts: 27
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Thank you all for your insights.
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05-26-2020, 06:37 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,879
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Quote:
Originally Posted by henny-penny
You would be happy with that?
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Yes, very.
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