Looking To Spend Some Cash
I’m looking to splash some cash! Okay, what I meant is to buy an investment property. I looked at some of the fund returns over 5 years, the better funds gave returns of around 50%, which means an average of 10% per annum or about 8.44% compounded, it seems ok returns for me.
But then, fund returns usually do not equal to investor returns. Fund returns are measured between 2 points in time usually 1 Jan to 31 Dec. If you invested an any other time, them you need to measure your investment to know your returns.
The downturn is what made me look into properties now. If you did your research and found good investment properties, these can pump money regularly and steadily for you. Where as for funds, when down turn hits, the fund reduce in value. The great advantage of funds is the liquidity and ease in which you can buy or sell. With properties, you need to do your homework, which includes hunting the right one, inspecting the property, negotiating the price, renovate and maintain the property. Not to mention about getting bank loans and the such.
After all this hassle, then you need to find tenants. Hopefully tenants that won’t trash your place.
I got this photo from FB which gives you an idea how bad it can get. I cannot imagine how someone can live in a place until it becomes a dump literally. You can see more photo’s like this here. You have been warned.
So while there are advantages to properties, there are quite a fair bit too. It is precisely due to the fact that it takes quite a bit of time that I held off investing in properties. But things changed and it is time to change as well.
At the moment, I have to invest time to look for the right one. Hunting for properties do take time. Wish me luck.
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2 comments
So your saying buy realestate?Like everyone hasn’t heard that already. Shouldnt you tell them to consider getting a real estate liscense or something? Buy a book written by so and so about being a landlord perhaps?
Brad, not telling anyone what to do. If getting a real estate license floats your boat, go on ahead. Buying a book about so and so? There are plenty of free info. I’ve seen and read enough to come to the conclusion that some authors make their money selling books rather than doing what they are telling people to do. So nope, I said that’s what I’m looking at. A property where you live might not be the right choice of investment vehicle for you.
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