What are the best options for investment?

R

rachel

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What would be the best mortage option and property investment, we have a house worth 2m which is paid, but are looking to downsize and also invest in residential property.
 
Sell the house now and rent for a year while the market cools. Then take your pick from a buyers' market.
 
Invest outside of Ireland-plenty of good options still in Spain, germany, Turkey etc
 
Why not work backwards?

You can get say 3.75% on deposit for your cash (and perhaps more in the coming months if rates increase further) so any investment ought to have a return in excess of this to compensate for the additional risk. i would suggest that you should be looking for a gross rental yield of at least 6% to 6.5% from any property in Ireland and a little more if you are looking overseas (especially in places like Turkey; Bulgaria etc).

I suspect that these types of returns are probably not available from Irish residential property at prevailing prices so that ought to give you a food for thought.

In my opinion you ought to broaden your investment horizons a little - property is not the only asset class out there.
 
JohnBoy said:
Why not work backwards?

You can get say 3.75% on deposit for your cash (and perhaps more in the coming months if rates increase further) so any investment ought to have a return in excess of this to compensate for the additional risk. i would suggest that you should be looking for a gross rental yield of at least 6% to 6.5% from any property in Ireland and a little more if you are looking overseas (especially in places like Turkey; Bulgaria etc).

I suspect that these types of returns are probably not available from Irish residential property at prevailing prices so that ought to give you a food for thought.

In my opinion you ought to broaden your investment horizons a little - property is not the only asset class out there.
Click to expand...

Whatever about not getting this level of return in Ireland, you certainly won't get it in Turkey or Bulgaria. Don't be fooled by the so-called "rental guarantees" being sold by unscrupulous agents in these markets.
 
Rachel,
Your query is quite scant on detail and as such makes it difficult to offer accurate advice.
Any number of posters/members here could offer you 1001 different options each with his/her own good reasons for taking their preferred option. If ye own a house worth 2m and have no mortgage ye are in a very comfortable position. This is enhanced by the fact that ye intend to downsize as this will yield ye hard cash with which to invest. As you don’t offer any more detail on your situation I would find it hard to even start offering any advice. From a purely logical point of view ye should firstly consider what ye're long term wants and needs are i.e. will ye have to, at some stage in the future, invest in children’s education, are ye working, do ye want to work, when would ye like to retire and what ye want to do when ye retire.
Forgive me if this all seems a bit philosophical but I believe that everyone should consider these questions when investing/making long term financial moves, and, as ye are in such a comfortable position ye have far more options open to ye and therefore can consider far more avenues of approach. I think the answer to what ye should do goes beyond just posting a one liner query.
Should you wish to provide more details, I'm sure members will be able to offer more detailed, and more accurately aimed advice on ye're situation. Naturally, ye should also seek professional advice.
 
that is pretty much the point that I was trying to make. if you look for reasonable risk adjusted returns you would be hard pressed to find a redidential property that meets these criteria (in ireland at least). i am sure that developers and professional investors are making money even in these markets but for the novice investor i do not think that property makes a lot of sense unless you can get it at a good price in a good location with a reasonable certainty of having steady rental demand.

a friend who is a professional investor in the uk is still finding properties (which he renovates) that yield 7-8% and to me this is what property investing is about - gross yields well in excess of the cost of finance.

to the op rachel - whilst board rules here prohibit the discussuion of individual shares you ought to have a look at some of the utility stocks that are listed on the london stock market. even after a bull market rally you can still find well regarded, liquid, shares that yield up to 6% and give the opportunity for capital growth. so there is a world of investment opportunities out there.
 
Rachel - i heard today on the radio that they expect house prices to rise by around just 3% next yr. If i was in that sort of situation I would definitely be looking at a number of asset classes to diversify my investments and would also be seeking professional advise in a number of areas like property investment & stockbrokers. I would also look to invest in funds, u could invest in property, equity funds offered by the likes of irish life, quinn life, new ireland etc. Most of the sunday broadsheets have a money table with the performance of such funds.
 
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