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Post by Deleted on Jan 12, 2016 14:33:31 GMT 7
Since we have a few guys here who are good to great at the whole stocks and shares game, I was wondering what makes it better than investing in bricks and mortar?
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me
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Post by me on Jan 12, 2016 14:46:30 GMT 7
Since we have a few guys here who are good to great at the whole stocks and shares game, I was wondering what makes it better than investing in bricks and mortar? I am not great at the money game...but I would hazard a guess that in a few years house prices in Australia will go back by about 50 % as funny mony and ryal go out of the equation. I think US got a wake up that way too.
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Post by Deleted on Jan 12, 2016 15:14:07 GMT 7
Since we have a few guys here who are good to great at the whole stocks and shares game, I was wondering what makes it better than investing in bricks and mortar? I am not great at the money game...but I would hazard a guess that in a few years house prices in Australia will go back by about 50 % as funny mony and ryal go out of the equation. I think US got a wake up that way too. That's a big call! Maybe maybe if interest rates hit 17% again. I perish the thought.
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AyG
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Post by AyG on Jan 12, 2016 15:37:34 GMT 7
Off the top of my head
1. Higher returns on average over the medium to long term.
2. Greater liquidity (Difficult to sell a property at short notice.)
3. Greater diversity. (It's trivial for me to own shares in 100 or 1000 varied companies. Difficult to buy 100 properties of different types in different locations, let alone in, say, 20 different countries.)
4. Less effort. (No need to manage the properties. Buying and selling is usually trivial. No legal cases to worry about when tenants damage the property or don't pay rent.)
5. No periods of zero income when properties are tenantless.
6. Minimal risk of sudden, adverse changes in taxation. (This is happening in the UK to try to make the buy-to-let market unprofitable, so freeing up more housing for first time would be buyers who are currently largely priced out of the market.)
I'm sure there are other pros that others can provide.
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Post by Deleted on Jan 12, 2016 16:01:53 GMT 7
Fair points above AyG, but all debatable.
I still can't see why I'd rather 500k tied up in stocks and shares over a property.
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AyG
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Post by AyG on Jan 12, 2016 16:13:52 GMT 7
I still can't see why I'd rather 500k tied up in stocks and shares over a property. A single property? Suppose the local major employer closed down. What would happen to (a) the value of the property, and (b) rental income? A single property as an investment is never a good idea (except, possibly, as the start of a larger property portfolio). And if the property is in Thailand, what would happen should a pig farm or a karaoke bar open next door? Both real possibilities.
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AyG
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Post by AyG on Jan 12, 2016 16:19:53 GMT 7
Fair points above AyG, but all debatable. I still can't see why I'd rather 500k tied up in stocks and shares over a property. Perhaps you could explain why you feel like this? I thought I'd put up some fairly solid reasons for why property is not, for most people, a good investment. I believe some people like the idea of property because it's something tangible and something with which they are familiar. Stocks and shares somehow seem more esoteric. As for all my points being debatable, I'd have thought only the first one is (and possibly the sixth). The rest are pretty much incontrovertible.
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GavinK
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Post by GavinK on Jan 12, 2016 16:50:48 GMT 7
For the layman and lady, bricks and mortar far easier to understand the performance/returns than stocks and shares, and much easier to go and kick if it ain't working out for you.
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Post by Deleted on Jan 12, 2016 16:56:44 GMT 7
My mum has a few properties around Sydney she rents out and has been living off that for years. I think for folks without a banking/finance background property makes sense to have, or land. Always depends on location what returns you will get.
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Post by Deleted on Jan 12, 2016 17:09:47 GMT 7
Property markets can crash, so can the stockmarket. But after the recovery, the house will still be there.
Making money through investment no matter what that might be should be looked at long term imo as compared to the stockmarket which to me anyway seems to be more about short term gains.
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Post by realisedurgency on Jan 12, 2016 21:57:00 GMT 7
According to a real estate agent I asked, if you are a foreigner living and working in Thailand, and want to buy a property with money earned here, you have to ship your money out of the country and then ship it back in with a statement saying it is for the purpose of buying property x. Property investment in that situation sucks.
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Post by Fletchsmile on Jan 13, 2016 14:13:07 GMT 7
AYG's list are the main ones for me. A couple of other big factors tho: 1) Sticking to what you know. I started buying stocks and shares as a teenager and have worked in related industries, so have a better understanding with more experience. 2) The Thailand factor. Being in Thailand for years: = It isn't as easy for a foreigner to own property = I was less familiar with it = Less comfortable with the idea = Not sure how long I would be here, so if I had to leave preferred to be able to just pick up sticks and move = I couldn't get financing originally. = Some of the laws and legalities make it difficult to fully understand implications Things changed a bit these days though on the Thailand factor, and we did buy one place, as: = I'm more comfortable investing here = Actually think if you're going to be here long term, the real question is can you afford NOT to invest in Thailand in some form or other = Also could get a mortgage thru the wife for financing. = Plus we have a family "home" now. Which is nice in itself, but also if anything happens to me, at least they have a roof over their head I still see property in Thailand as more about nesting than investment for me though Cheers Fletch
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Post by Fletchsmile on Jan 13, 2016 14:19:01 GMT 7
For the layman and lady, bricks and mortar far easier to understand the performance/returns than stocks and shares, and much easier to go and kick if it ain't working out for you. Yes. I'm mindful of the fact that if something happens to me, then the Mrs understands it much better. Another thing also is financing/ leverage. Only needing a small deposit on a large asset. If you can afford the repayments thru thick and thin, then over the long haul this works considerably in your favour. In addition to bricks and mortar, most Thais also like the idea of owning/ investing in land.
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Post by Deleted on Jan 13, 2016 14:20:26 GMT 7
The tangible aspect appeals, good points fletch.
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Post by Fletchsmile on Jan 13, 2016 14:25:25 GMT 7
According to a real estate agent I asked, if you are a foreigner living and working in Thailand, and want to buy a property with money earned here, you have to ship your money out of the country and then ship it back in with a statement saying it is for the purpose of buying property x. Property investment in that situation sucks. Yes that's true in most cases. For most foreigners to buy a condo the money has to come from overseas. This is one of the reasons that you can't get finance with a local bank in Thailand. Because if you did, then the money wouldn't come from overseas. You usually can't use money you've earned here either. A few years back I was working for a bank where an expat colleague wanted to buy a condo from earnings made here. He had to send the money to Singapore and then roundtrip it back here. He was lucky that he could manage the exchange rate issue better than most in arranging with the treasury departments of the bank in Singapore and Thailand to get a preferential rate. Otherwise this becomes an extra couple of % cost for someone, plus the risk of a rate move between sending it and receiving it back.
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