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Thinking of buying an investment property
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26-02-2013 1:44pm#1Hi,
I am currently in a situation where I can afford to save a lot of money for the next few years. I have no personal debts, but also no assets.
I would like to have an asset, and that is why I am now considering buying an apartment with a view to renting it out.
Basically, I live in Dubai and would like to buy in either Cork or Heidelberg.- If I buy in Cork, the purchase would be purely to rent out to people. The tenants would service the mortgage through their rent and hopefully the mortgage would be clear within 10 years.
- If I buy in Heidelberg, again, tenants would pay off the mortgage while I might move in myself when I move back to Europe in the future.
Any view or opinions? Not having any assets, and having very few savings at present, I feel very exposed...
However, I can save 20,000 per year between now and 2015 or 2016, so the savings situation will soon be put right.
Long term goal would be to have two or three properties each generating a monthly income to make my retirement more comfortable.
I'm 30 and soon-to-be married. No kids planned until 2015.
Thanks for the advice
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newsflash. where do you think people will live if there are no landlords ? Idiot.
Hope you get a perma ban for your bullcrap rant. Calling somebody a rapist and wishing them dead becasue they want to buy a property investment. You sad sad little man
There is a wider issue at play here, and I am not advocating state housing either by the way. It's apparent the authorities want little to do with housing and would like the huge gaps in the market between those who buy and those dependent on the rental sector to provide stable housing to be filled by the private market. The question is who should that private market be. Should we not be encouraging professional and regulated companies to fill that void? I know from my own experience living in Sweden where my landlord was Stena Fastigheter (same company which runs the ferries) that it appears to be a lot easier and beneficial to society to regulate industry than it is to regulate thousands of individuals. This will never happen in this country, however, until individuals themselves start pulling away from the buy-to-let market, which offers zero security of tenancy or, in most cases, professionalism of services.
Any improvements in the private rental markets in this country are only ever achieved through statutory obligations placed upon landlords and never from their own volition or general sense of morality. Housing is as fundamental a human right as health or education, yet we seem to find it perfectly acceptable in this country to leave the provision of this right to individuals whose sole qualification is their ability to access credit, and their sole motivation their ability to generate profit. The impact on society as a whole is immense. Sub-standard accommodation, no security of tenure, no establishment of communities, transient populations, and the banking sector crippled with toxic buy-to-let mortgages.
So yes, it's unfortunate that the earlier posters overly emotive language has caused offence, but surely not as much as the distress caused in communities up and down the countries by landlords with zero interest, other than profit, in being in such a vital sector of fundamental importance to the whole of society. I have no problem with individuals renting out holiday homes or temporary accommodation but their ability to provide stable and secure housing to vulnerable sectors of society is questionable to say the least. I'm not some dyed in the wool socialist. I'm a believer in open markets but surely there's certain areas of such fundamental importance to society as a whole where profiteering and speculative and socially destructive investments should be both discouraged and restricted.
So a private rented sector I am all for, but let it be run by regulated professional organisations, as opposed to individuals with either access to credit or a few bob in the bank who see homes as investments and other citizens as their own pension pots.
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Actually I take umbrage at the inference that line is unconstructive advice.
It is more sound investment advice than telling someone with no savings to date, about to get married and thinking of buying an investment property in the current climate when they live thousands of miles away.
For instance the well know Durex brand, once owned by SSL international was sold to Reckitt Benckiser plc (RB on LSE).
RB shares are currently at 4,369.00
In mid February,
If you decide Durex investment is not for you then why not try investing in
Church & Dwight (CHD on NYSE) who owns the Trojan brand which is one of the largest sellers in the US.
Church and Dwight's brands include:- Aim Toothpaste (acquired in 2003 in the U.S. from Unilever)
- Arm & Hammer Spinbrush (known until 2009 as Crest Spinbrush; acquired in 2006 from Procter & Gamble)
- Carter's Laxative (originally known as Carter's Little Liver Pills and later as Carter's Little Pills, acquired in 2001 from Carter-Wallace)
- Mentadent (acquired in 2003 in the U.S. from Unilever)
- Pepsodent (acquired in 2003 in the U.S. from Unilever)
It's shares are trading a much lower €61.68 today with an $8 billion market cap.
Over the past 10 years Church & Dwight’s revenue and free cash flow grew 181% and 402%, respectively.
In fact some have reckoned it could be on Berkshire Hathaway's radar as a nice little investment.
So if you want to talk about constructive, investing in a company that makes condoms makes a lot more sense than saddling oneself with a mortgage on a property that is thousands of miles away from you.
Brilliant. One of the best replies I've ever read here. 10/10.
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There is a wider issue at play here, and I am not advocating state housing either by the way. It's apparent the authorities want little to do with housing and would like the huge gaps in the market between those who buy and those dependent on the rental sector to provide stable housing to be filled by the private market. The question is who should that private market be. Should we not be encouraging professional and regulated companies to fill that void? I know from my own experience living in Sweden where my landlord was Stena Fastigheter (same company which runs the ferries) that it appears to be a lot easier and beneficial to society to regulate industry than it is to regulate thousands of individuals. This will never happen in this country, however, until individuals themselves start pulling away from the buy-to-let market, which offers zero security of tenancy or, in most cases, professionalism of services.
Any improvements in the private rental markets in this country are only ever achieved through statutory obligations placed upon landlords and never from their own volition or general sense of morality. Housing is as fundamental a human right as health or education, yet we seem to find it perfectly acceptable in this country to leave the provision of this right to individuals whose sole qualification is their ability to access credit, and their sole motivation their ability to generate profit. The impact on society as a whole is immense. Sub-standard accommodation, no security of tenure, no establishment of communities, transient populations, and the banking sector crippled with toxic buy-to-let mortgages.
So yes, it's unfortunate that the earlier posters overly emotive language has caused offence, but surely not as much as the distress caused in communities up and down the countries by landlords with zero interest, other than profit, in being in such a vital sector of fundamental importance to the whole of society. I have no problem with individuals renting out holiday homes or temporary accommodation but their ability to provide stable and secure housing to vulnerable sectors of society is questionable to say the least. I'm not some dyed in the wool socialist. I'm a believer in open markets but surely there's certain areas of such fundamental importance to society as a whole where profiteering and speculative and socially destructive investments should be both discouraged and restricted.
So a private rented sector I am all for, but let it be run by regulated professional organisations, as opposed to individuals with either access to credit or a few bob in the bank who see homes as investments and other citizens as their own pension pots.
There are plenty of good landlords in this country, you dont need to be a large corporate for this to happen. Yes there are slumlords aswell but in the general scheme of things if you look at the number of rentals verus the number of PRTB disputes on a yearly basis you would have to say the bad landlord thing is complely overplayed.
As for regulation again doesnt require a situaiton where corporate entities / pension funds run the market to have it regulated. The government are free to implement any legislation they choose to at any time.
You have a far too symplistic idea of what would make for a better rental market IMO.0 -
CHD and RBL are both trading at long term highs at the moment, perhaps if you had suggested investing in them 4 months ago it might have been decent advise. Regardless, it certainly isn't relevant to a thread on A&P asking about buying an investment property to funnel savings into.
Yes I did twig they were high at the moment.
Actually CHD would have been a nice little investment a couple of years back. :mad:
But IMHO they are still a better investment than a single investment property esepcially in a crocked property market a couple of thousand miles away from you.I am not allowed discuss …
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