If you are worried about how little your savings account is making every year, what are the alternatives? Hiding your money under a mattress might seem tempting, but won’t see your money grow at all. There are two ways in which you can build up your money for future use - invest in either property or shares.

Both do carry an element of risk, but the potential rewards for either route are far greater. With a little preparation, careful saving and good timing, you could make both work, but which is best? We take a look at both in detail.

Recent Trends

In property, the markets in many parts of the world are not that great. Across the UK, house price growth is at its highest for eight months, although the picture in London is far less promising than elsewhere. Any growth in property prices is low, although the average property costs more than £220,000 ($291,000), so any sale would boost your bank balance.        

To avoid buying property that might depreciate in value, look at the regional trends. In some areas of the country, prices may be on the rise, whilst they may be stagnant elsewhere. Take time to look at this before deciding on whether to part with your money.

Doing Research

Research is a vital part of choosing where to invest in property; it is also the case when looking at stocks and shares. Picking a market where you can watch your money grow will take time, but you can make it work by doing your research. Look at financial news websites and see which companies are among the most profitable.

If you see a company you like the look of, find out about their historical performance before investing. If you decide to invest in a company or market, choose an online trading platform that is easy to use and understand. Oanda have a platform that allows traders to look at shares as well as other markets including currencies.

The Paperwork

Investing in both shares and property involves a little admin work before you spend your money. There is, however, more involved with buying a house. You need to take into account deeds, taxes such as Stamp Duty Land Tax and, if you want to rent the property, paperwork around security and letting contracts for your new tenants.

For trading, you would have to set up an online account, but once that is done and you have enough money to trade with, you are ready to go. Trading involves less work, which is really useful for the time-pressed investor. It is something you can do during your lunch break at work or on an evening.

Buying shares is, overall, the best option for investing. While there are more fluctuations, you don’t need to spend as much money or do as much paperwork. The potential rewards are greater too, as property prices are less likely to rise as much.

Published by sandeep Malik