Re: house of cards????
find that the LTV is lower or the rate higher but it is generally possible to raise the loan on the property
That was the point I was raising when I was asking how these properties will be paid for. With normally a reduced LTV and ignoring a higher interest rate it makes it makes raising deposits for further investment a matter of producing cash
finding BMV (below market value) properties with higher than average yields (and prices continue to increase). This is difficult in the Irish market but still very possible in some overseas markets.
A lot of the "new" emerging markets have the possibility of very good capital appreciation. But is there a chance of realising the gain without selling there, i.e. could you refinance and still have the property "wash its own face". And if you re-finance can you take the money out of the country or do you have to re-invest in that country. If that was the case you may as well build a portfolio here as there
I would agree that there are many elements in a diversified portfolio. However, I wouldn't restrict myself to shares for companies listed on the Irish stock exchange
I may have phrased it a bit better, I was referring to shares
or the Irish property market. However, having heard Jim Power speak Tuesday night Irish shares were something to shout about. 25% growth overall for the year
That said Irish shares are largely based on the building industry, construction companies and banks being the main players on the exchange
rights and wrongs of different investment strategies can be a highly emotive topic!
Probably correct, I was in awful mood the other night when I replied
Yield is an important ingredient. I believe if you do look outside of Ireland,
Unfortunately, so are exchange rates. € gained 52% on $ in past 2 years. How about capital appreciation on US property
Finally, I would not discourage anyone from investing overseas but to think that there is "big idiots" all over the world who do not understand the value of property is a little naïve
May as well buy into a .com sure no one seems to be able to see the real value in tem anymore
A property or two in a portfolio which might give a good return is not risky strategy but one from every corner of the world would just not work
If anyone has ever purchased a property overseas, then they will understand what I am talking about, once OK, twice maybe, but after that a third set of restrictions, “funny” laws, legal practices, unforeseen costs, management charges, large deposits, opening bank accounts and dealing with estate agents you will pull your hair out
stuart@buyingtolet.ie