rox
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investing - 2006/10/25 20:14
Reading the press we are told to expect a fall in house prices, a fall in rental yields etc. it all sounds quite gloomy.
I need to make some provision for my later life and kids when I have them and think housing is still a safer option than stock markets BUT :
1.Are we in a bubble at the moment with nervous investors fleeing volatile stock markets and going into houses - will any one of several factors suddenly push prices over the edge and precipitate a fall eg change in economy ?
2.With prices so high at the moment - can I still invest (taking along term view) and not get burnt?
3.I need my investment to at least be cash neutral ie I don't necessarily care if a property on buy to let loses a little money in terms of house price valuation so long as I don't need to dip into my own cash ie rental covers costs.
4.Where is the best place and type of property to get into - I can only afford 100-200k properties so I am quite limited.
5.Although I don't regard myself as well off, I am just about a 40% tax band payer so would also seek ways to maximise cashflow whilst minimising costs including taxation.
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