Where to put cash deposit for a rental property

[henny-penny]

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?

 

[pb4uski]

...Savings account is 2.2% - 2.4%....

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.

 

[henny-penny]

from what I can see it looks like that 2.2-2.4% would at least be keeping up with inflation in Norway.

You would be happy with that?

 

[calmloki]

Just saw poster's location. "Never mind"
Emily Litella

 

[RunningBum]

You would be happy with that?

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.

 

[pb4uski]

You would be happy with that?

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.

^^^ 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.

 

[henny-penny]

Thank you all for your insights.

 

[mrfeh]

You would be happy with that?

Yes, very.