How to calculate what is more profitable to do with the inherited 5 million rubles: buy an apartment for rent or put money on a bank deposit?

- For 5 million rubles. in Moscow you can buy a one-room apartment. If you lease it to tenants, then at the average rates in force today, you can get a yield of about 8.4% per annum. Then, you need to pay 13% tax on the income received, and the net will remain 7.3%. And a long-term bank deposit today gives 7% of annual income, which is not taxed.

As you can see, the yield is comparable. But the apartment also has a market price. Over the past year, prices for residential real estate in Moscow have grown by 5.4%. You can earn extra money on this. And one might get the impression that it is more profitable to invest in real estate. But this is only true when apartment prices go up. And on the market more than once it happened that they became cheaper. In addition, it will be difficult to sell real estate without loss if money is urgently needed.

Therefore, a purely arithmetic calculation does not answer the question of which investment option to choose. It is also necessary to take into account all life circumstances and the goal that needs to be achieved. If guaranteed income and safety of investments are important to you, choose a deposit, splitting 5 million rubles. in parts of 1.25 million and placing them in four banks. This will make it possible to protect each deposit using the state insurance system, which applies only to amounts within 1.4 million rubles. And if you are looking for higher returns and are willing to take risks, then real estate investments are more suitable.