Buy to lets
The Natural Philosopher wrote:
tony sayer wrote:
Look at it long term .. and yep, good as investment as any.
Historically a slightly worst investment than average actually.
A stock market tracker over the same period would have done better.
Which is probably true. It is surprising therefore that if you go into a
bank and ask to borrow 200k to buy a buy-to-let they won't bat an
eyelid. Go in and ask to borrow 200k to invest in a FTSE100 tracker and
you might get a different response.
The reason that people have made such a profit over the last ten years
is not just the general rise in prices but the fact that a lot of that
investment has been leveraged. But just as that is an advantage in a
rising market is is a _big_ problem in a falling market.
In the long term it doesn't matter if property underperforms the stock
market slightly. If three-quarters of your investment is coming from the
bank your profit is increased four-fold.
Andrew
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