Invest or buy property?

jimjames

BucksLady wrote: »

Thanks for answering my question ManOfLeisure. I think you've really done well with your property investments. To venture into commercial property - that does seem to be a brave move - glad it worked out for you.

Rest of you guys..... Well at least ManOfLeisure won't go to bed each night fretting about the Footsie. Or won't spend months on end wondering which Investment Trust is best . I personally don't think his success is down to luck - he sounds pretty shrewd to me. Hey, but what do I know

Not sure you can have any investment and not worry. Housing is no different and gearing adds another dimension.

atush

Thrugelmir wrote: »

Shares is a very generic term.

Wasn't Enron the company of the year in 1995, 1996, 1997, 1998 and 1999............

People get sucked in if there appears to be easy money to be made. As are blinkered and generally lazy.

Many of us have lived through an interesting period of time. I doubt that the next 50 years is going to be anything like the past 50. For a multitude of different reasons.

I agree it is generic, and I was still invested in the US market in single shares then, but didn't hold enron. Arm was tops back then and still is now. I doubled my money on them a few times.

Basically, the risk you speak of is why collective investing thru funds or investment trusts is preferable to holding single, talked up, shares. Also not investing all your eggs in one basket (be they shares or property) as that is how many with enron came a cropper. Many lost everything when they both worked for them, and held all their pensions in the company's shares.

Just as some overleveraged BTL landlords (and their fav bank NRock) came a cropper in the financial crisis.

atush

mike88 wrote: »

Yes but most people don't live that long. Certainly the original poster won't as he is about to retire.

And yet he could boost both returns and capital by putting it into pension instead?

Who wants to run a landlord business in their dotage?

atush

BucksLady wrote: »

Thanks for answering my question ManOfLeisure. I think you've really done well with your property investments. To venture into commercial property - that does seem to be a brave move - glad it worked out for you.

Rest of you guys..... Well at least ManOfLeisure won't go to bed each night fretting about the Footsie. Or won't spend months on end wondering which Investment Trust is best . I personally don't think his success is down to luck - he sounds pretty shrewd to me. Hey, but what do I know

but he might worry if his commercial property is hard to rent out during a recession, or if his major rental client goes under?

I remember Merton Park back then ( I lived in teddington for a bit) and it wasn't very nice. Goes to show how picking the next up and coming area to be gentrified counts. It is now very well gentrified. Look east maybe- how about Catford?

BucksLady

atush wrote: »

but he might worry if his commercial property is hard to rent out during a recession, or if his major rental client goes under?

I remember Merton Park back then ( I lived in teddington for a bit) and it wasn't very nice. Goes to show how picking the next up and coming area to be gentrified counts. It is now very well gentrified. Look east maybe- how about Catford?

ManofLeisure said he sold his Commercial Property and made a shed load of money .

ManofLeisure_2

BucksLady wrote: »

Well at least ManOfLeisure won't go to bed each night fretting about the Footsie.

I use Trackers, so I do check the Markets. Never fret about them though

ManofLeisure_2

atush wrote: »

I remember Merton Park back then ( I lived in teddington for a bit) and it wasn't very nice. Goes to show how picking the next up and coming area to be gentrified counts. It is now very well gentrified. Look east maybe- how about Catford?

To be honest, I've never been keen on Merton Park either. However, it now seems to be quite popular and once a property is marketed, is soon snapped up.
Not sure that I would buy in Catford .

mike88

atush wrote: »

And yet he could boost both returns and capital by putting it into pension instead?

Who wants to run a landlord business in their dotage?

I don't think we can say who wants to do this or that because they are nearing retirement. Some people want to remain active, have an interest and not vegetate for the rest of their existence.

A pension is an option of course.But whether investing in a pension three years from retirement will provide the level of income required is debatable. In some areas - and Cornwall is probably one of them - a property can yield at least 10% minus expenses. Capital appreciation/depreciation is largely irrelevant as it is income the original poster requires. How much would the original poster have to invest in a pension over the next 3 years to generate this amount of income immediately? Property is a minimal risk investment as there are more people who want to rent than properties available.

Age of an individual is a significant factor in this case and somebody of retirement age has to be moderately risk averse.

Thrugelmir

mike88 wrote: »

In some areas - and Cornwall is probably one of them - a property can yield at least 10% minus expenses.

Property is a minimal risk investment as there are more people who want to rent than properties available.

One assumes that these are primarily holiday lets?

As for risk. To guarantee an income is someone better off holding an investment in either 300 assets or a single asset. From a risk perspective the answer to that one seems obvious. As the single asset is not going to produce an income 100% of the time.

BucksLady

Nudged as reference.