The question is where is your money the safest in the medium term ? & where can it earn you the best return in the period of the next 3-5 years. ?

Well up until now the safe general public has always been avid fans of savings being in the banks, building societies or stock market but things have changed. We have had many conversations in the last month with new applicants contacting us to register their interest to buy bricks and mortar as opposed to having funds in the banks.

A conversation yesterday sparked us to outline that this is where the market is going. We are experiencing an increase of activity in November compared with October and September 2008. That’s not to say the market is storming but there is “light at the end of the tunnel.”

The true factor is that if asking prices are accurate then a transaction will inevitably entail. The hard facts are that purchasers are ever increasingly studious on the profitability of the business which relates directly to the price they offer. We think many sellers in this market are now in tune to this and once further interest reductions take place we will see increased activity.

Consider this opinion in investment property you can get 8% return on capital invested can you get that sort of income, now out of savings ! Most people are in the property market for the medium term and if you are perhaps you may revise your thoughts of saving vs property.

So in conclusion, if interest rates change tomorrow (currently at 4.5%) then this will not be the brightest news for people investing money in savings. Perhaps property will be “Hot or even Medium Property” once again.