Oh dear ... these sort of threads have a habit of getting a bit heated! Here's my 2 cents ...
>> 'I'm regularly rendered speechless reading some of the posts that appear on a regular basis in the "Property Investment". I don't want to single anyone out, but there's people buying property in random countries who obviously have no clue whatsoever about what they're getting into'.
People tend to use forums such as AAM in order to supplement their research. Therefore, if someone is seriously enquiring about a prospective investment and are obviously performing some degree of research then I think it may be harsh to suggest that they are buying at 'random'. I think the concern is whether or not they perform sufficient due diligence. Secondly, everyone's investment career started at or close to the same point - zero. Most of us would be embarrassed by the naivety of some of our first investment ideas. Thirdly, if they were fully versed in an investment then they would hardly need to post an enquiry on AAM!
If a person is asking questions then it is a good start and is a great deal better that those who buy shares on the basis of a 'tip' from their next door neighbour who overheard a conversation in Bewleys or those that happen on a property exhibition in a hotel while out for a Sunday drive and buy a property in some exotic location whose name they can't even pronounce.
>> 'The amount of times I've heard the word "cheap" used when really they mean "cheaper than Ireland" is amazing - whoever pointed out that property in Falluja is also "cheap" in that regard hit the nail on the head.'
Are we sure we know what they mean when they use the word 'cheap'? I personally have no problem with someone using the word with respect to any investment ... provided it is used in the correct context. For example, if a given property is cheaper than comparable properties in the same or similar markets then it is a valid ingredient (together with other metrics such as CAPs, DSRs, NOI, etc.) in gauging the quality of the investment.
>> 'I've no doubt that when the blocks of SSIA money start maturing this buying spree will ramp up even further'.
I have no doubt but that you're correct but that isn't necessarily a bad thing. What is the alternative ... wait for our pensions and realise at the age of sixty five that the 'system' has left us down and that we can no longer afford a decent lifestyle? I think not. Like many I believe that we can't depend on anyone but ourselves to ensure that we have a nest egg for retirement. What worries me is the inability of many to objectively plan for the future and to measure prospective investments against that plan. Some have good investments for the wrong plan and vice versa. But most have no plan at all.
>> 'I have to agree. I'm a great believer in only investing in what you know, otherwise it's like putting 20 grand on a horse on the basis of a tip when you know nothing about horses!'
I think if we adopted this approach to life we would be reluctant to learn anything new. There are some very poor investments outside of Ireland but on the other hand there are also some excellent investments. If you're not willing to look and learn then firstly you will never find them and secondly you won't be able to tell a good deal from a bad one. Sound property investments in Ireland are hard to come by. Returns are extremely low and even laughable when compared to those found elsewhere.
Regards,
Paidi