10000 euros - What best I can get from them?

[Honest]

I have 100000 euros which I can keep in bank/invest somewhere. I have no experience of investing or trading, so what are the options for me to get something from these euros? One options is to fix them for one year and then I can get something like 100 euros after one year. Is there any other easy but better option?

[Adrian42]

One options is to fix them for one year and then I can get something like 100 euros after one year. Is there any other easy but better option?

Higher interest rates always mean higher risk.

If you want to be sure that you don't have less money in a year, then this is the only option.

[Rip]

https://www.finlandforum.org/viewtopic.p ... 33#p505457

[Honest]

two appartments from 100 000? Where?

Sorry, it is 10 000.

Lotto is the worst idea to invest money. In Finnish culture of wasting small amounts of money it works well. Yesterday there was in news that on average every Finn spends 300 euros/year on fruit machines (slot machines).


Thanks for the other feedbacks.

Any other suggestions?

[atas]

1. Put them in a bank with the highest interest rate possible (do your research, I have no idea about Finnish banking products...)

2. Invest in some low risk products, such as low risk mutual funds.

3. If you want to go into trading, then you must first like it as a hobby and then be prepared to lose everything. I myself put some small percentage of my savings in FOREX trading, and having made up my mind about losing it all makes me more relaxed and having better decisions. I made some beginner mistakes in the start, and now I am recovering, but after 1.5 year I am about -7% down from my original "investment".

4. If it was 100000, I would tell you to invest in a startup a small amount as an angel investor. You should have prepared to lose it all.

5. If it was 100000, you could buy an apartment in Tallinn or some other even more low-cost market (which hasn't still taken up ).

6. Buy some second-hand luxury car from Estonia or wherever else you can find it cheap and you don't have to pay taxes here. Of course, this is not an "investment", at least not in the traditional sense...

7. Don't do anything. Continue to accumulate money (provided you will continue to accumulate it with the same or bigger rate) and when the sum reaches 100000, do for example #4 or #5, but in the meantime you could do #1...

[Honest]

Thanks atas. I think I need to accumulate some more money while keep researching about all the possibilities

[Pursuivant]

Yes, 10K is maybe buy bonds or something. 100K buy a flat (or two) and rent out... maybe even fiddle with mortgage and the service charges so the rent covers them.

[Adrian42]

100K buy a flat (or two) and rent out... maybe even fiddle with mortgage and the service charges so the rent covers them.

And then end up in insolvency in 3 years when the interest on the mortgages quadruples, at the same time as value of the flats goes down after Finnish housing bubble bursted, while unemployment in Finland is higher than today...

Many people in Ireland and Spain followed advice like yours until recently, and that is exactly the reason why they (as well as their countries) went bankrupt.

No sane person would assume that flat prices always go up, and one has to be aware of the risks of buying a flat.

[onkko]

100K buy a flat (or two) and rent out... maybe even fiddle with mortgage and the service charges so the rent covers them.

And then end up in insolvency in 3 years when the interest on the mortgages quadruples, at the same time as value of the flats goes down after Finnish housing bubble bursted, while unemployment in Finland is higher than today...

Many people in Ireland and Spain followed advice like yours until recently, and that is exactly the reason why they (as well as their countries) went bankrupt.

No sane person would assume that flat prices always go up, and one has to be aware of the risks of buying a flat.

Interest? Cash dont have interest. You pay and its yours. Or are you talking about possible renovations or what? Or profits?

[Rip]

100K buy a flat (or two) and rent out... maybe even fiddle with mortgage and the service charges so the rent covers them.

And then end up in insolvency in 3 years when the interest on the mortgages quadruples, at the same time as value of the flats goes down after Finnish housing bubble bursted, while unemployment in Finland is higher than today...

There is no chance of interest rates quadrupling in three years, with the ECB deciding to follow the Japanese example (not Japan of 2013 but the previous two decades).

Otherwise, with leverage of course comes risk. Pursuivant didn't make very specific suggestion, but in Helsinki you'd need to leverage rather lot for two apartments using 100k capital. In some other areas you perhaps would not need leverage at all, but you'd have more risk of not getting your flats rented out.

As this is the forum dedicated to moving to Finland maybe Varissuo would do...?

[Adrian42]

100K buy a flat (or two) and rent out... maybe even fiddle with mortgage and the service charges so the rent covers them.

And then end up in insolvency in 3 years when the interest on the mortgages quadruples, at the same time as value of the flats goes down after Finnish housing bubble bursted, while unemployment in Finland is higher than today...

There is no chance of interest rates quadrupling in three years, with the ECB deciding to follow the Japanese example (not Japan of 2013 but the previous two decades).

The primary objective of the ECB is to get an inflation rate slightly below 2%.
When the inflation rate becomes much higher, the ECB has to act.

We might differ on how probable it is that the interest rates in the Eurozone will become much higher soon, but it is a risk one has to keep in mind when taking a mortgage whose interest rate is not fixed for decades.

[Pursuivant]

Naah, the two flats would be in some ghetto and the tenants some refugees or social cases paid by the city. Renovations paid by the social and you can rip off serious money.

[Rick1]

[quote="Adrian42

The primary objective of the ECB is to get an inflation rate slightly below 2%.
When the inflation rate becomes much higher, the ECB has to act.

We might differ on how probable it is that the interest rates in the Eurozone will become much higher soon, but it is a risk one has to keep in mind when taking a mortgage whose interest rate is not fixed for decades.

The primary objective of the ECB is to get an inflation rate slightly below 2%.
When the inflation rate becomes much higher, the ECB has to act.

We might differ on how probable it is that the interest rates in the Eurozone will become much higher soon, but it is a risk one has to keep in mind when taking a mortgage whose interest rate is not fixed for decades.[/quote]

With the size of the hole that they have created (and still are enlarging), the rates will probably not go up in the next ten years. The whole EU (world) should just be spending like the usa and let other countries clean it up. But also in this case you probably disagree.

And the inflation has been higher many times but intrest has only gone down because of the debt the countries have. Higher intrest rates will cause (sooner) collapse of the EU.

[Adrian42]

Higher intrest rates will cause (sooner) collapse of the EU.

Low interest rates might do that even faster...

At the moment, you have to take relatively high risks just for getting the inflation rate as interest.
And it is relativity cheap to get a credit for speculative investments (like Helsinki apartments).

Making people and companies to take higher risks is the wanted short-term effect of low interest rates for improving an economy.

Having low interest for too long causes people to take too many risks, and creates bubbles of heavily overpriced investments.
If Finland will have a huge bubble in the local housing market bursting, then Finland will be Spain 2.0

[Rip]

Higher intrest rates will cause (sooner) collapse of the EU.

Low interest rates might do that even faster...

You really think the ECB should follow even more closely their script from end of 1920's for destroying the continent? If the ECB had even little concern for their future (obvious that they have none for other people) the should (like FED) start to show some concern also for the state of the economy, but even on inflation grounds, there is absolutely nothing in the current state of the economy to make inflation run. Deeply depressed, and will be for years to come.

Making people and companies to take higher risks is the wanted short-term effect of low interest rates for improving an economy.

What i here is, that companies, at least all but the most largest ones, are complaining that credit is very tight, hindering business of those that still would have one. Helsinki housing is expensive as population is increasing and (both for public sector and private shortfalls) construction isn't living up to the demand. (it would help if they were less immigration from those groups that can't cover their own housing expenses)

If Finland will have a huge bubble in the local housing market bursting, then Finland will be Spain 2.0

I find it hard to see what would be common with the causes etc. of 1.0 and 2.0, except euro of course.