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Short Term Investment: Why it’s a Good Option

Why Short Term Investment is a Good Option

Are you looking to invest your money, but don’t want it tied up for several years? It’s a common problem. Long-term investments are much more lucrative than short term due to allowing your investment to age, but unfortunately, we don’t all have the time to do so.

Short term investments are a great option for those still looking for a decent return but don’t want to wait 5+ years to see their money come back. If you’re planning on buying a house or a car in the near future and want a little more to put towards it, then short term investments could work for you. 

If you’re looking to make the most out of your money in a short period of time, here’s how short term investment options work and why they’re a good investment for your future.

Investment

What Is A Short Term Investment? 

Short term investment options are much different from that of long term investments and investments for passive income, as these rely on your money being tied up for several years at a time. 

Short term investments, on the other hand, work to invest your money within the space of several months to a few years and provide a decent return on investment, with minimal risk.

Usually, short term investment relies on investments with smaller amounts of money such as £10K or £20K, although larger figures such as £50K will provide you with a greater opportunity for return on your investment. 

If you’re interested in investing short term but aren’t up to speed on investing, we’d recommend you check out our ‘Beginners Guide To Investing’ for more information.

Why Would You Invest Short Term?

Short term investment options have their fair share of advantages compared to other investment means, one of the most notable being providing a return on your investment in a shorter period of time.

If you’re not looking to have your money tied up for 5+ years at a time without being able to touch it, short term investments can be a much more flexible means of making a little extra cash.

Security

There are many reasons why investing your money short term is a good idea, one of the most prominent is as a means of protecting your long-term investments. Creating a diversified portfolio with a variety of different investments will help to protect you in case a certain market or industry crashes. 

The problem arises when you are coming up against a financial emergency that would mean you would have to liquidate possibly one of your most lucrative long-term assets (most likely at a loss). 

But, within a diversified portfolio, you can use one of your short term investments as a buffer as they are easier to liquidate with minimal penalties – protecting your overall investment portfolio. 

Lower Risk

When compared to high-yield bonds, venture capital, real estate investment trusts etc. short term investments are usually coupled with less risk. While the return may not be as considerable as long-term investments, you are leaving less of your return to chance.

If you’re looking for an investment option that can provide a decent return on your money while protecting your investment, short term, liquid assets are usually your way to go. 

On the other hand, non-liquid short term investments that provide both passive income and a hefty return can be a good middle ground to making some of your money back quickly.

Flexible

What are your money goals? How close together are they? 

  • Holiday
  • Mortgage
  • Education
  • Car

Whatever your reason for investing, short term investing provide a perfect opportunity to collect a little extra cash for your looming large expenditures. Holidays, mortgages, are never going to come at neat intervals in your life, short investment options can provide you with a means to prepare for these ventures.

The Best Short Term Investments

When working with short term investments you have a decent amount of good, reputable options to choose from. Short term investments tend to be much more flexible and provide a variety of different options to venture into. 

Whether you’re looking for passive income, a lump sum, or are just wanting your money to slowly tick in the background there are numerous investment options at your disposal.

Online Savings Accounts

Online savings accounts (or ISAs) can be a great, safe means of investing. The downside? Most standard banks offer on average a rate of 0.01%, that’s as close to zero as possibly can get. 

Even though your money won’t even be beating the cost of inflation it is making more than sitting around in your current account – with the added benefit of security, there is no risk at all.

Bonds

There are several bonds to choose from when looking at short term investment options, premium bonds, corporate bonds, high-yield bonds etc. 

Premium bonds can be a great option for looking for short term payoffs with no risk. While your investments aren’t worked out in interest, you are entered into a monthly and yearly draw with cash prizes which can be much more rewarding than standard means of investing.

On the other hand, there are corporate bonds catered to short term investments, these bonds seek to track the shorter maturity side of the corporate bond market. They can be a good means of acquiring fixed or cash income, however, are equally liable to risk.

Certificates Of Deposit (CDs)

Certificate of deposits, or CDs, are much like savings accounts with one considerably difference. CDs are a secure form of time deposit, meaning that the money has to stay put for a certain amount of time to earn the promised interest. 

When working with CDs you’re also working with a fixed term, and usually a fixed interest rate. The benefit of using a CD over a standard savings account is that it provides a higher level of interest. 

Car Leasing

Buy2LetCars are a short term investment option with fixed rates, high return and provide considerably passive income each month. Investing in car leasing can often be far more lucrative than other short term investment options due to our special business model helping you to maximise your return on investment.

By investing with us, you’ll get a 7% – 11% interest rate per annum alongside comfortable monthly payments. 

That all sounds great. But, how does it work? That’s a good question.

Why You Should Invest Short Term In Car Leasing?

At Buy2LetCars we give your money a purpose, we look to make a considerable difference to your investment with a perfect blend of monthly passive income and a hefty final payment. Your final gross payment is roughly just over 50% of your initial investment, and increases the more you invest!

If you invest for example £70K with Buy2LetCars, your money will be invested over a three year period, with a reliably high return.

1) Reliable High Returns

Unlike most other short term investment options, you can rely on our car leasing investments to give you fixed rate of interest over the three year period. And on top of that, we’re able to offer a higher rate of interest than most short term investments, meaning that our investment option is much more viable and lucrative than most other short term options.

We put your money to work helping you to get the most out of your investment, providing you with both passive income and a fixed lump sum. 

Alongside generating a hefty return, we provide ourselves on our transparent customer service, and our support in helping our investors reach their goals.  

2) Fixed Income Rate Monthly Income

You can invest pretty much any amount with Buy2LetCars to produce a generous return, starting at £7,000 and reaching beyond even the £200,000 mark we work with our investors collaboratively to get the most out of your investment.

No matter how much you invest, you can count on earning a rate of 7-11% interest per annum, which when compared to other short term investment options is much higher. 

We also want to support you financially throughout your venture, as a result, you are rewarded with 36 monthly payments of up to or more than £767.07. 

Whether you’re looking to invest £10K, £20K, £20K or upwards of £100K we provide a simple and reliable way of investing your money. The funds are paid directly into your bank each month, on time, in full, without default.

3) No Defaults

No defaults. That’s right, you read that right. We’re happy to announce that we have a zero funder default. There are no shocks, nasty surprises, hidden costs, what you see is what you get. 

All your investments are calculated from the start and aren’t subject to change, your monthly income and interest rates are fixed.

Many of our investors have realised our investments are one of the best short term investment options available on the market. So whether you’re looking for to save for a holiday, mortgage or car in the near future investing in car leasing can help you get there.

piles of coins with plans growing on top with the largest pile having the most growth

What Options Do We Offer?

We offer an extensive range of short term investment options to cater to whatever your investment amount, from £7,000 all the way up to £280,000. On top of that, we offer a generous rate of interest on your investment, between 7-11% p.a.

If you’re looking to see how much you could earn from your short term investment using our unique model, try our returns calculator to see for yourself.

Before Your Short Term Investment

Investing is a great way to earn a bit of extra income, whether short term or long. However, it’s important to thoroughly understand your financial situation before even considering investing. Investments can pay off big time, but also need the time and patience to get there, so you need to be stable in the meantime.

Understanding the risks associated with investing is key to being successful, weighing up the pros and cons of each and being confident in your decision is going to help. With short term investments requiring an initial deposit, you need to ensure you’re not dependant and will not be on this money.

When dealing with any kind of investment as a general rule of thumb it’s advised to have built-up savings as well as clear off any outstanding debt. This will provide financial security should you encounter an emergency of any kind. 

If you’ve assessed your finances and all of the above applies, you will feel much more comfortable and at peace with making your short term investment. 

a man stood on top of blocks with icons to show a buy to let cars investment scheme

Invest With Buy2LetCars

Invest with Buy2LetCars for your short term investment to generate the return you deserve. Our unique business model provides you with a short term investment option that is secure, reliable and cost-effective. 

Why not take the time to see if our short term investment option is right for you?

If you are interested in our investment opportunities, contact our team today on 0203 823 1032, or get in touch using our enquiries form. If you prefer a face to face chat, come and meet us at our walk-in centre, found at 1 Bell Parade, Glebe Way, West Wickham, BR4 0RH.

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