assess the risks - know how to get out

Shame they didn’t fill Canny McSavvy in on this during the boom. :unamused:

So buying a shoebox off-the-plans in Leitrim is a more complex assessment than say, analysing which biotech company to buy shares in? That’s a real gem. I never realised Canny McSavvy was so much smarter than all those equity analysts out there. :unamused:

Any investment in any asset class is as complex as you want to make it. You can do as much or as little due diligence as you like.

And the rewards on property are greater? Try telling that to Warren Buffett.

Ths type of statement drives me nuts, as it is clearly, demonstrably wrong.

It is a simple financial fact that in both cases, with no specific information available, both offer unbounded potential returns. Also depending on the specifics each could potentially offer bounded, but greater than 100% losses.

Doing it right is … remember everyone who was going to be a dot com millionaire with the stocks they owned in the late 1990’s? It’s all too easy to make money in a market that running away to the upside. It’s only going one way, the only risk is timing your jump from the train before it runs into the buffers killing all on board.

In “normal” markets, it takes a fair bit of work to determine if the investment is a good one., regardless of the asset class. Generally, equity investments out perform property over a 30 or so year investment horizon (and that takes into account peaks and troughs) by a fairly decent way (8-10% return on property, 12-14% on equities are the figures that often get bandied about).

Property can be a good investment. But … as with all investments doing your homework first in improtant. Avoiding the tops of the market (or even the froth), buying a quality asset that will make a return over your investment period, being careful about your leverage, understanding the forces that move the market you are getting into and never, ever believing the hype.

Then, and only then, Caveat Emptor and away you go.

Blue Horseshoe

Sure canny was never meant to be in on the joke. Others knew better :wink: