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  1. #1

    Invest in property or Stock Market?

    Hi there

    Does anyone know whether its better to invest in property or the stock exchange?

    I know property over the longer term is more lucrative but I was wondering over 5 years?

    I live in farnham and have spoken to my local estate agents - http://www.romans.co.uk/estate-lettings-agents/farnham - these guys tell me property is the best choice (they would). Is that correct?

  2. #2
    If I could re-write my own investing history (which I am more or less happy with, even with the wonderful benefit of hindsight), I often wonder where I might have been today if I had invested in property when I started in the '90s.
    I'll never know (and I'm not going to start now), but this doesn't answer your question.
    Of course, you could invest in property VIA the stock market and cover both options - there are numerous (and various) property investing opportunities available, some of which are highly regarded (especially for income).
    One obvious problem with investing directly in property is that you have no immediate access to your money.
    Regards

  3. #3
    I don't have the definitive response to your question. However, your estate agent will ALWAYS have the answer.

  4. #4
    When people compare stockmarket with property, it always seems to mean funds/shares Vs houses.

    But the mechanics are totally different. Transactional and holding costs for houses are very high, sales are chunky and typically slow and most investors use very high gearing to boost their returns.
    The gearing supercharges profits in a rising market, but can easily wipe you out if prices fall.

  5. #5
    This is an easy one for me. I recently moved house. I added up the costs, purchase, sale, maintenance etc. then subtracted this from the profit. Does not come close to the stock market. I also assumed divi and rent cancel out.

    There are other issues, liquidity of stocks and the fact people don't live inside your stocks and shares are two big plus points.

  6. #6
    Steve/Tom/Bob whatever. Best use the same name each time you post, don't duplicate posts and don't advertise Estate Agents. Otherwise, follow your gut feeling, do your own research (it's all out there in the ether) and never take advice from strangers, forums nor interested parties.
    My most important bit of property advice: if you invest in property and end up with a 7m high, beamed drawing room, always fasten your shirt collar tight and keep your mouth closed when sweeping spiders and their webs from the ceiling with your extendable cobweb brush.

  7. #7
    Once you have your own residents you should diversify....don't have all you eggs in one basket however good that basket is. I have made money out of both. Be very careful about buy to let as heavily taxed and you can loose everything if geared and markets decline and interest rates rise. If you really wish to buy into residential property do it via Housebuilders shares within an ISA then free of CGT and Income tax. Also you are free to buy and sell when you wish. No way would I go near them at moment as much better investments elsewhere.

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