Shall I invest in property?

padington

Renting and investing in commodities could be a wise move right now and it would allow you to build up a little fund to help pay for handy men etc when you need them when you do buy. Its a great time to invest by the look of things and you may be in a stronger situation further down the line as land prices may drop next year also.

I think patience right now would be a wise and you could have a much smaller mortgage if you play your cards right.

Naturally its all a gamble but making a clever gamble is the name of the game.

Asheron

lol investing in property?

Property is not an asset it's a liability!

geek84 wrote: »

Hi Folks

PLEASE FORGIVE ME IF I AM POSTING THIS QUERY ON THE WRONG FORUM & WOULD BE GRATEFUL IF SOMEONE COULD TELL ME THE CORRECT FORUM TO POST IT TO -

I have some savings and thinking of investing in property. The biggest problem is that I am slightly disabled and not much of a diy man. I also have problems in using tools properly for maintenance purposes.

I could of course get an agency to take care of the maintenance for me, but I am sure that they will charge a lot of money.

Taking that into consideration, would it be a good idea for a person in my situation to invest in property?

Thanks in advance for your response.

guitarman001

Property as an investment is such a hassle. The first reply to this post summed it up for me. It's a fools errand buying into property right now - don't believe anybody that says otherwise. Commodities in times of high inflation are a decent bet, and a bit of silver wouldn't be so bad, either. Personally, my money is split between NS&I index-linked, a meagre savings account, and junior miners.

Asheron

1. Agnico-Eagle Mines Ltd
2. Goldcorp Inc
3. Abington Resources Ltd
4. Minefinders Corp. Ltd
5. Hellix Ventures, Inc

guitarman001

I will check those out, thanks - what are your reasonings for these?

I am in ANGM, BIP, RRR, OTC (ouch), RMM. Was in EML (dragging) & BEM (good) but sold out a while ago.


I would not recommend these to the OP, though!!

lvader

It's hard to say, it looks like commodities are still on the rise and property prices still have some way to fall. However at some point this will change, my guess is that 2012 will be the best time to invest in property.

padington

Asheron wrote: »

lol investing in property?

Property is not an asset it's a liability!

It is if it saves you paying rent as long as there's no mortgage to pay.

However yeah using your life savings and entering into a world of mortgage debt to lose the joy of clicking your fingers and the landlord having to fix everything isn't an investment unless it saves you money on day one.

principa

Property is but one asset class. Remember that the land is where the value lies, not the mud and stone which need constant care sitting on top of it.

Consider buying a portfolio of funds which include a property fund or two. Buy some tangible assets to keep things enjoyable (like wine, arts, classic cars..). Then you can capitalise on investment bubbles by rebalancing periodically. Well that's the theory ;-)

bluesnake

The first think that came to mind is that you were too eager, may have paid too much for the property and your mortgage may not be cheap either? Always be in a position where you can cover your outgoings for 6 months.

Depending where the property is situated and located, you may get more money in renting out rooms, compared to renting out the whole house. Many divorced men and single people need a place to stay too.

You need to make a plan (spreadsheet) and expect the interest to go up this year too. All your gains are taxable, but you losses will also lower your tax.

Not all properties break even the first few years! Recalculate how much you will get per month with tenants, how much without tenants and after sales how much you would have lost. Decide which is the acceptable plan. Look in the small ads of your paper and internet boards for your area.

Derivative

Going all in into one investment class is near enough always a silly idea.

With the amount of capital required to buy a house outright you're well positioned to buy into almost all other asset classes.

Look up 'diversification' on Wikipedia and there's a good explanation.