Bank Term Deposits Lure Prospective Buyers From Property
Bank term deposits are having a huge resurgence, according to financial advisers, as cashed up investors flock to the traditionally “safe haven” investment type to park huge profits they have made over the last ten years.
Denis Orrock, general manager of financial services provider Infochoice says bank term deposits, which can promise interest rates higher than the Reserve Bank of Australia’s official cash rate of 7.25 per cent, are making a comeback.
By comparison to term deposit rates offered by the banks, return on investment for inner-city apartments in Melbourne are still between 3 and 4 per cent, according to agents.
A property’s return on investment is calculated by dividing the annual rent received on a property, by the price paid, and converting this number to a percentage.
