Why would you as a risk adverse investor bet all of your money on one investment i.e. a BTL house?
I think Sean Quinn's experience illustrates this brilliantly.
He invested in quarries which he ran himself and made millions, he invested in cement plant and made more millions, he invested in radiators, and in Insurance and made billions. He ran all of these business himself or through people he appointed.
Then he invested in Anglo, where he was relying on other people to make money for him, and lost every thing.
How many top investors / fund managers do better than Joe Soap who just follows market trends? Statistics say not many.
You could also say that he made money by investing in the things that he knew. When he stepped outside his area of expertise, he ended up ruining himself.
The top investors/ fund managers research everything about a company before they invest. How many Joe Soaps do that before they invest whether it's property or equities?
What statistics are you talking about???
And in any case asset allocation will have a bigger impact on performance for most individual investors than instrument selection will.
Furthermore when it comes to funds managers, you find that managers of family offices, sovereign funds, Swiss private pension funds and so on tend to do very well. While managers of publicy available funds other fail to achieve the benchmark - which is not surprising since the odds are stacked against them from the start.
*Couple mid forties - children in national school
*Own family home mortgage free and no other debts.
*1 in secure employment approx earnings 50k p.a.
* pension from previous job fund approx 80k on hold - no pension with current position.
*college fund is a balanced savings managed fund currently approx 30k with ongoing contribution 190 p.m.
Now the big question.. Have 150k on instant access deposit (few a/c's
Q1.Are considering is this an oportune time to invest in a rental property for hopefully a payback in 20 years at 65-68 age ?
Several of my siblings have rentals so I am fully aware of the highs & lows that may come with being a landlord.
Q2. What proportion of lump sum should we use provided we can secure a buy to let mortgage ?
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