A pensions warning - Do not put your eggs in one basket.

purch

And always get multiple opinions

Which, ironically the OP won't.

It's rather pointless even bothering to post thoughts or opinions on a thread such as this, as the OP clearly has garnered all his/her information from various blogs on the intergoogle, all with the same or similar opinions, and has not the slightest interest in listening to "multiple opinions"

Batchy

I am pretty sure, most people think the same way until they have visited a financial advisor. So all you financial advisors out there should be offering help rather than slating him.

For those of you slating property as a long term investment, your forgetting about leverage and the only way to leverage in shares is to play PIPS, and spread betting. The difference between Hedge funds, shares and bonds is the RISK factor is FAR higher than property You could end up with ZERO very quickly, where as with property, the risk is your cash flow, if it stops, you could risk overdues and therefore repossessions, but this would also need VOIDS, as rents will generally more than cover mortgage payments. Property will keep pace with inflation and ALSO give an income BEFORE retirement. If you time it right, it can be VERY profitable. Unfortunately the last 5-6 years could have been wiped out but at least cash flows should be positive still. Investing in pensions cash flows are non existent, wtih government moving goal posts, who actually thinks they will still get 25% tax free on retirement, or that things will not get changed in the next 40 years still. Or that they will be able to retire at 55 voluntarily or carry on working until they want to past 70. etc.

Investments often out perform HPI on paper, but as you havent got the capital in to invest at the start, for the first 10 years, it makes little difference compared to the huge leveraged gains (or losses, short term obviously) on property, but when you start investing, you start with £10000 quid, if you have 2 bad years to start, it could take over 10 years, just to catch up, then, how often do you have 10 year period without a shock, so then your back to square one before you have even started to see a gain, buy this point, youve lost interest and motivation. The only reason investments perform is by the constant drip feeding of investment inflows. The difference with BTLs now, is the huge need for a large cash advance to participate in it! Like 40% to 25% deposits.

Loughton_Monkey

I specifically and deliberately keep all my eggs in one basket. My grandmother finds it far easier to suck them that way.

mr_fishbulb

Batchy wrote: »

who actually thinks they will still get 25% tax free on retirement, or that things will not get changed in the next 40 years still. Or that they will be able to retire at 55 voluntarily or carry on working until they want to past 70. etc.

You could also argue that no one can be sure on the tax rules for second homes that far in the future. What if they do, for example, make CGT on the sale of any second home 50%. If you've built that capital up over a large number of years then that is a fair whack of your retirement gone.

Property should be part of a well balanced portfolio, but remember not to put all.....oh the circle is complete

Loughton_Monkey

mr_fishbulb wrote: »

Property should be part of a well balanced portfolio, but remember not to put all.....oh the circle is complete

Exactly. If you get subsidence, then the property part becomes well and truly unbalanced.

The bullfight arenas in Northern Spain and Southern France were very well built structures, but apparently, for security of the bulls, there was only one way in and out. Sadly there was a huge fire, causing mass panic, and all the spectators couldn't get out quick enough - perishing in the fire.

Thus proving that you shouldn't put all your Basques in one Exit.