100K make it work harder?

Janman07 said:

Markjbloggs,

In the initial post he says that the 40k figure is all his, no taxes owed, so I presume that is a net figure. Anyway you are nitpicking (is that a word?).

I would be interested to hear any views on which option is the best one for Rob right now.

A) Put 100k on deposit in the hope that Irish residential property will fall in price over the next few years and buy at the reduced price.

B) Buy the house now in the belief that even marginal gains will outpace bank interest.

C) Let's say there is no C for the sake of the discussion.

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A) would seem the best option at the moment , IMHO (& i have been an EA for 15yrs!)

remember to factor in stamp duty, removals , legal fees etc.
then if you are selling into a weak market - you have a serious liquidity problem.

house prices ARE dropping kids........!
Also, the is a huge

Also there is a huge number of properties coming onto the market at the moment - on top of the unsold summer stock & not to mention countless new developments that are reducing prices to get out.

AIB selling out , Gunnes selling out etc etc......

murray;349079 house prices said:

ARE dropping kids........!
Also, the is a huge

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Can't discuss. But when do you think the true market value of property stock will be seen. March or later ?

I think a more balanced view to whether you should invest in mutual funds or individual stocks should be considered. Yes some people have access to Bloomberg, DataStream, Reuters etc... they can understand share price movements when they read them in the newspapers, they are completely comfortable with understanding a business strategy and reading their balance sheet.

However, in reality some people do not have the financial acumen to understand why one stock is better than another, they may not know how to read a balance sheet, I could go on and on. In that case, rather than playing ennie meanie miney mo (or however you spell that) in the hope that they pick the right companies, giving their money to a professional who understands the market, has in-built diversification and has a solid performance record may be an eminently more sensible idea. For the record, I know plenty of portfolio managers who have generated solid consistent returns through a variety of markets and I would personally trust to manage my money effectively.

I am not saying that direct investment in stocks is a bad idea, however it may not be a suitable investment solution for everyone. This website outlines the advantages and disadvantages to both.
http://msucares.com/pubs/publications/p2273.htm