Most save up at a traditional bank saving, which often gives a modest return on a few percents annually. Not everyone is aware that different types of investment on average yield a much higher return, and this is advantageous as, among other things, retirement savings. There is a general perception in the society that investments are high-risk and that it usually ends up in significant economic losses.

It’s an annoying social attitude, which probably derives from embarrassing banking advisors who try to keep their customer’s savings in-house. The truth is, however, that investment in equities, bonds or particular real estate gives significantly more economic benefits than traditional bank savings.

Invest in bricks
Real estate and property investment popularly referred to as “investment in bricks.” This kind of investment requires liquid funds in the form of, for example, pension savings. On the other hand, the risk is at the low end, as buildings always have a particular value compared to stocks and bonds. Real estate investment can either be made in private residential buildings, commercial properties or holiday homes. Especially the last has been a profitable business for many years. Renting of holiday homes in popular areas giving the same profit compared with the rent out of a private residence pay-off for six months, on a seven-week summer holiday.

Investment in vacation homes
If you consider investing in vacation homes, choose an area in growth or a popular travel destination. That way, you are better protected from income, as demand for housing in these areas is extremely high. Note, however, that there will usually be short-term rentals as rental periods are very seasonal. Combine of course with a vacation destination where you can make use of the accommodation yourself.

Vacation rentals in destinations like on the coastline of Bulgaria are growing and with increasing demand. This allows you to, in addition to an expected increase in value, also easily resell the pleasure of the home itself.

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