I'm just about to go out and don't have time to think this through properly but my initial reaction to the question is that I bought my first property and paid off the mortgage, now I rent it out and it the rent covers the mortgage on my second property. All of the money I now earn is my own to do with as I please.
If you have £150k in the bank it's been earning no interest for the last decade. Stocks go down as well as up - especially in the last decade, very risky to invest if you don't know how to play the markets. If you buy a property with that money in a good location then your £150k is safe, your capital investment is growing and you are earning a good rental income which you can put to work elsewhere. The benefits are multiple. Also easy to sell whenever you want if the area is right, location is everything. My second property I could let for around 40% more than my mortgage should I choose to because it's in a great central location with good amenities and travel links.
Yes renting properties takes a little management but not necessarily a great deal. Make sure your property is in a good location with high rental demand, in a good state of repair, and be choosy about who you choose to let to. If you have a good property in a good location you will have multiple offers when it becomes available to let. If you want to go off travelling or live abroad you can get an agency to take over the management of it for around 10% of the yield. Not too much hassle or cost if you ask me.
I don't have time to read the thread through at the moment and will look forward to picking it up later but I think those dismissing property as a worthwhile investment aren't seeing the full picture. For anyone making their first big investment property should hands down be the way to go. The only scenario where I think this may not apply is if you have contacts who can provide otherwise sound advice, for instance a close relative who is a market trader.
If you have £150k in the bank it's been earning no interest for the last decade. Stocks go down as well as up - especially in the last decade, very risky to invest if you don't know how to play the markets. If you buy a property with that money in a good location then your £150k is safe, your capital investment is growing and you are earning a good rental income which you can put to work elsewhere. The benefits are multiple. Also easy to sell whenever you want if the area is right, location is everything. My second property I could let for around 40% more than my mortgage should I choose to because it's in a great central location with good amenities and travel links.
Yes renting properties takes a little management but not necessarily a great deal. Make sure your property is in a good location with high rental demand, in a good state of repair, and be choosy about who you choose to let to. If you have a good property in a good location you will have multiple offers when it becomes available to let. If you want to go off travelling or live abroad you can get an agency to take over the management of it for around 10% of the yield. Not too much hassle or cost if you ask me.
I don't have time to read the thread through at the moment and will look forward to picking it up later but I think those dismissing property as a worthwhile investment aren't seeing the full picture. For anyone making their first big investment property should hands down be the way to go. The only scenario where I think this may not apply is if you have contacts who can provide otherwise sound advice, for instance a close relative who is a market trader.