equity release from my property portfolio

[markowitzman]

Agree with you sudden apart from one point.
Do not think that stock market will be a good enough hedge if you are long stocks.
A suitable hedge would be to
buy puts or short the housing sector (or market as a whole but hard to time!) of the stock market in my opinion.
If property crash I think US stock market and hence the world markets will not escape.
I do not think there will be crash but who knows?
I personally would not go into shorts or puts until there was very clear evidence of a crash both in the stock market or specifically in the housing sector.
Something of the order of the dotcom crash.
Until then I diversify into as many assets like yourself.
Just feel being long the stock market in a crash is not a hedge but am open to your views on this.

 

[rocky]

hi all.
i broke both my ankles recently so as i lie in bed i have nothing better to do than annoy my good wife and think about my own situation.
markowitzman, i don't think i said that property gives better returns than the stockmarket, i meant that once we are on the property market and are making money it would do no harm to diversify so as to spread the risk in case of downturn in property.
at the moment i have 3 investment houses worth 920k with mortgage of 419k,also have family farm with no debt worth around 400k,which i let to an neighbor for small money, family home mortgage is 250k on house worth 450k, as far as i am concerned the above portfolio is pretty good and can stand on its own.
being a blocklayer by trade my average income is between 1000-1800/ week but given that any downturn in property would also hurt my work,it makes sense for me to look at other options.

moving forwards and hopefully upwards, i intend to start another investment portfolio buying more buy to let house's (not appartments) using some equity and interest only mortgages which i will hold onto while waiting to see which way the market goes, i also intend invest more of my spare cash in the stockmarket as an hedge against a property downturn and as long as the return beats the deposit rate for cash i think its the best place. (if its good enough for warren buffet its good enough for me) i think this double approach is best in my situation but might not suit everyone.
sudden,

WHY NOT APARTMENTS
ARE THEY NOT EASIER TO LET TO YOUNG COUPLES OR SINGLES

 

[sudden]

rocky.
(bet clubman will be all over me for this one)
i feel that if people have a choice between renting an house or an appartment for the same money-most would take the house,
feel appartments value and rents would drop quicker than houses
in a downturn.
a friend of my has several houses and (very nice) appartments around cork city center and all he does is bitch about the high turnover in his appartments, l
i have an irrational fear that,over time, appartment blocks could become delapitated.
i dont think there will be a property crash but i like to be careful.

just because i am biased against appartments don't make them bad investments.


sudden.