Are You Still Picking Stocks Rather Than Buying Property?

Are You Still Picking Stocks Rather Than Buying Property?

Want to play against the big boys…or simply create wealth? Think about how many stocks analysts there are out there. Then think about an area you know….an area you know good streets…an area where you know the bad streets…Why bother?

Do you know if you invest in the Greater Manchester area in HMO properties or even single lets & do them up …at the end of the day you will probably make in excess of 9-12% Net. Compare the risks. These terraced houses can not go to zero. Any stock can go to zero. These terraced houses have been here plus minus 100 years almost…Doesn’t it stand to reason they will be here for another 100 years. Compare that to any stock. Do you think you can give it to your grandchildren especially with all the volatility in the markets.

More so, I do not like leverage. The less leverage the greater stability of your portfolio. Yes you will make less…but you will survive when and if interest rates eventually go up.

Is it about ego or supporting your family….Imagine earning a 25% return via stock investing, but the reality is that is very hard to do whilst investing in stocks. In this scenario, Maybe you would have beaten the market’s return of 11.4% by 13.6%. That additional 13.6% return (which, again, was a truly extraordinary achievement) is what investors like to call alpha. In reality this is beyond tough to do.

Compare this to my mum who is 90 this year. She buys, rents and sells flats. She bought a flat in 2009 during the crisis, yes she has seen her fair share of crisises and the world still has not ended. She bought the flat for 55,000. It has been rented since then for a conservative 800 a month. No big shakes …very little risk…Simply grinding out profits. She did not take a mortgage. Now, the market has recovered and thinks to cash in a couple chips. She just listed the property for 119,999. Think of the return on her money. She is a virtual Warren Buffet …but in property. This is the key to property. More so, She loves the idea of Professional HMOs. It is splitting up the cake and renting a slice at a time…

What do you think?