Hi Brendan,
It is indeed...4.5% to 6.5%, and typically closer to the latter.
You can add to the list the additional difficulty in resolving problems if you get a difficult tenant. It is hard enough to collect rent and deal with the RTB and courts as a personal investor.
I have seen at least two people lose their entire pension fund through leveraged property investments.
As you have pointed out the risk is huge. I have seen at least two people lose their entire pension fund through leveraged property investments.
We all know people who were relucant landlords from posts down the years on here, where they borrowed 100% and then some, and it never made sense from the get to. Rent maybe meeting the interest only mortgages, which were a totally bad idea as many had no way to pay down the capital etc. They were at the time, recommended on here.As I recall you posted about one of these previously. I seem to remember that the projected rental income did not meet the mortgage payments at the outset. That type of experience is no basis to form a judgement on a well thought out property investment plan, which expects to make a good return on rental income alone.
1) Diversification is the only free lunch in investing
2) Home bias
3) Overconfidence
4) Extra costs
5) Extra risks
6) No evidence of extra returns
I started investing in a pension via equities in 1998 and in 2013 converted into cash.I got back exactly what I put in with no profit except tax relief.I then invested in property and doubled my capital inside 4 years plus got a 6% rental yield.
I started investing in a pension via equities in 1998 and in 2013 converted into cash.I got back exactly what I put in with no profit except tax relief.I then invested in property and doubled my capital inside 4 years plus got a 6% rental yield.
Im back in cash as I can now take 25% tax free and am going to buy property via an ARF with the other 75%.My plan worked because I bought in the right location and did not borrow.All my financial advisers told me I was crazy.
So you've demolished the argument in the OP. QED.I started investing in a pension via equities in 1998 and in 2013 converted into cash.I got back exactly what I put in with no profit except tax relief.I then invested in property and doubled my capital inside 4 years plus got a 6% rental yield.
Im back in cash as I can now take 25% tax free and am going to buy property via an ARF with the other 75%.My plan worked because I bought in the right location and did not borrow.All my financial advisers told me I was crazy.
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