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Пікірлер
@ymp175 15 сағат бұрын
Love this ELI5 explanation!!
@numerouno2532 15 сағат бұрын
Can you do a video about Return on Arse? I'm sure it would be very popular :)
@peterellwood2103 16 сағат бұрын
What about getting exposure to property through stocks, I.e. REITs etc. Best of both worlds?
@MarkEdenrson 16 сағат бұрын
!The value of the US dollar is declining due to inflation, but it is increasing in comparison to other currencies and commodities such as gold and real estate.. I'm worried that rising inflation will cause my $420,000 in retirement funds to lose value. What else could we do with our money?
@derivwyne 16 сағат бұрын
As a beginner, it's essential for you to have a professional to keep you accountable. I'm guided by Adviser Bruce Murdock a widely known consuitant..
@legjijikuy 16 сағат бұрын
I have heard a lot of wonderful things about Adviser Bruce Murdock on the news but didn't believe it until now..
@ShipLi-ik1de 16 сағат бұрын
I managed to grow a nest egg of around 120k to a decent 💲950k in the space of 3 months. I'm especially grateful to Bruce Murdock, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape..
@MarkEdenrson 16 сағат бұрын
This sounds so good and I would like to be a party to this, please is there any way I can speak with him?
@ShipLi-ik1de 16 сағат бұрын
look his name up plus adviser on the web.
@aldoromano-be8su 16 сағат бұрын
This is so useful, I wonder what the correlation is between gold-property-stocks is? I personally have been put off property because of all of its pitfalls, and the leasehold stuff didn't help. But I feel if I were to invest in a small house as an investment, then it could be an interesting hedge.
@k0023382 16 сағат бұрын
There is one feature that makes or breaks above all the factors you mention, you are unable to sell a portion of a house (a room) if you need to cash in for whatever reason, I can always sell 5% or 10% of my portfolio within my ISA and after 2 working days the money is on the bank, it takes me a minute. Maybe the alternative is to extend the B2L mortgage (if you find the bank and the cost of the transaction it is not too high.... takes a lot effort / time / money)
@goodfella_ 17 сағат бұрын
"Its scary" -- your local boomer.
@Paulusthewoodgnome515 17 сағат бұрын
in the stock market you dont have to deal with people
@philiplythgoe7173 17 сағат бұрын
REIT ? lol
@daverichardhadley 17 сағат бұрын
The home that you live in does generate a kind of rental income, the rent that you are not paying by living there. When that is taken into account, its returns can look much better.
@bprosperie 18 сағат бұрын
Another great video and great analysis.
@MultiMogman 18 сағат бұрын
Ramin is very soothing to listen to.
@Andygb78 18 сағат бұрын
The far right is always risky.
@Andygb78 18 сағат бұрын
Mr Vanguard's roof never leaks.
@spartacusptolemaida 18 сағат бұрын
Liquidity plays a big part. You can literally get rid of your funds within seconds. Imagine having to find a buyer and and lawyers and so many hidden fees if you wanna sell your property.
@_Information_ 15 сағат бұрын
And dealing with estate agents! Torture
@johnhaug1747 18 сағат бұрын
I owned and managed BTL property in St. Louis Mo for 16 years. Why bother, unless you like being a property manager, and do not mind spending time in court Re: Landlord vs tenant rent and damages suits. Equities are far cleaner answer. Place 1 year annual fixed costs in money market account for down stock market years, so you don't have to sell at a bad time. Most stock market downturns are not long lived.
@mattlm64 19 сағат бұрын
Owning your own home has comparable cashflows to buy-to-lets. When you have your own home, you do not have to pay rent, therefore you are making a saving which is comparable to the rent received if you were to let it out. Owning your own home has less headaches, less costs and is much more tax efficient. Though owning your own home is a balance between investment and consumption considerations and carries idiosyncratic risk by itself.
@oneworldcafe 19 сағат бұрын
I would hold both stocks and residential property. Leverage is the trump card with holding property. Also you can add value by improving or extending property. Its more work though.
@TabulaRasa666 19 сағат бұрын
Provided much info I didn't know before but perhaps 3 possible omissions 1) didn't mention leveraged equity products e.g. leveraged ETFs which can multiply 2/3x an indexes gains 2) the increasing legal/compliance burden of owning property 3) can lose all your money in equity whilst property/land will always retain some value
@anthonyshaw1336 18 сағат бұрын
Not in a index fund
@angusstephens8415 19 сағат бұрын
Something on my mind is that most investors would purchase a BTL property with an interest only mortgage. So leverage + mortgage costs. It would be good to factor these points somehow to reflect the average investors experience.
@robertingram9404 20 сағат бұрын
2:44 0.2% all in seems low to me. Yes it’s possible, but when comparing I’d probably use something a little closer to average, 0.3-0.5
@mjan1509 20 сағат бұрын
In case of property, take mortgage and leverage. Rate of return will be more than mortgage rate
@financialchimes4546 20 сағат бұрын
Are the returns for property net returns, taking costs into account, or are they gross returns? Because that probably makes a substantial difference.
@Shamele55 20 сағат бұрын
Stocks is an investment, BTL is running a business - stocks wont call you when your busy at work/evenings/weekends/holidays. They are always with you, and you can just pack up and leave - its in your pocket - no need to worry about changing legislation, elections etc. Did BTL and just not for me - I want my investments to reduce the stress in my life, not to increase it. And managing an agent is as bad if nor worse than a tenant, as its not their money and they dont really care, and at the end of the day - everything is landlords resoonsibility (courts etc). Plus - a lot easier to pass it on, when you go, do dont leave a massive headache to your loved ones (ie to remortgage within 6-12months etc) - everything a lot easier. But I like the peace and sense of freedom most!
@Dan-cd6hm 18 сағат бұрын
Yes! As a renter I've had to live under too many unreachable landlords that treated it as a 'passive' investment rather than running a business with responsibilities that provides a service.
@Shamele55 17 сағат бұрын
@@Dan-cd6hm property is a people business, and all of the “fun” coming with it - there are paychos on both ends - I wouldnt call my landlord repeatedly at literally the middle of the night saying my boiler stopped working (apparently it just the pressure in the boiler dropped, costing me £75 call out fee…) - what can I do at 2am??? I prefer working with my spreadsheet more. Also, many comments on how amazing leveraging is - it could be - but it could be not - having millions in debt over your head, it could fall like the house of cards if a few circumstances would align - and given that you need to sign personal guarantee - could wipe you off in no time. When the tide goes, you will see who was swimming naked. If markets drop, you know they will come back, its all theoretical, you dont have a bank breathing to your neck :)
@Alex-cw3rz 20 сағат бұрын
One thing is increase in rent, if you are wealthy enough to buy a property out right and well have poor morals, you can increase the rent on the pretenses of prices rising or interest rate rises and just pocket the difference. For example in a very basic sense a student house that was 180,000 before the pandemic is now worth 225,000 in my old uni town you can put up the rent by 20% and every time that price changes you can keep on doing it, in fact in that market it seems just put the price up whatever. As I say it is immoral but that's a common thread in a lot of the ways people get ahead in this and untill that is solved these things are their to be exploited.
@Abdul_Rahman86 20 сағат бұрын
Great video. I’m interested in maybe adding REITs to my portfolio. I’d love to see REITs vs property
@aldoromano-be8su 16 сағат бұрын
Problem is REITs are mostly commercial, not domestic renting, although I think there are some student rental REITS
@Alex-cw3rz 20 сағат бұрын
I think the only addition for housing is how involved you would want to be if the property needed renovation that percentage could go up dramatically, if you ever watch homes under the hammer they are normally make around the 7% of the price of the property per year, but I've seen some that are 14%+ and when you think the person put in a 25% deposit and they are now gaining that much every two years from the property, which is just impossible with stocks in the long term the best investors in the stock market have ever have got close to that.
@bosshog36 20 сағат бұрын
I'm invested in both, the stock market is more liquid and less hassle than dealing with property.
@kr050 20 сағат бұрын
Property, particularly housing should be a social resource. Small numbers of people owning large numbers of houses and charging rent for profit is one of the processes that has wrecked standards of living in this country.
@JonathanJamesHarrison 20 сағат бұрын
Property returns are leveraged with mortgages. Index funds generally aren't. A big difference
@JohnSmith-gy8rc 20 сағат бұрын
The answer is to have a bit of both, isn't it? BTL no longer works if highly leveraged, esp if a higher rate taxpayer, but a Ltd company solves that issue. Keys are not to have too much debt, manage yourself and pick your tenants carefully.
@beny.5736 20 сағат бұрын
The returns data on housing reflects unlevered returns. Including leverage which is common for property, the returns are much more significant 😂
@VoiceOfThe 20 сағат бұрын
Personally I prefer to go all in with a global index fund and rent. You have diversification with real estate in there anyway, so you’ve all bases covered. Besides property is illiquid and many people don’t factor in maintenance costs, taxes and interest when running the numbers.
@getreal7964 21 сағат бұрын
RoA - Return on Arse, love it Ramin !
@ianschofield8259 21 сағат бұрын
In the UK a second property is liable for capital gains tax. Yes you can off set some property costs, but it’s still a big chunk of money and the government seem to be reducing capital gains allowance to almost nothing.
@aldoromano-be8su 16 сағат бұрын
Yes good point. Although I think the days of massive capital gains are over. I think we will get stagnation and maybe a mild decline.
@nighttrain1236 21 сағат бұрын
One could also benefit from the residential property market indirectly by owning the equity of home builders. This solves the cost of ownership and liquidity problems associated with direct ownership of a BTL, for example. There may also be ETFs that I don't know about. Furthermore, there is the commercial property market (rather than just residential).
@marinameier 21 сағат бұрын
Another negative for btls are increased legislation and a general sentiment that landlords are the source of all evil. The level of hassle is high
@coderider3022 21 сағат бұрын
BTL are surely reducing as the DB lump sums won’t be as common ? Housing is more of a political football these days and will be taxed, rent controls and standards etc will drive the small single property holders out.
@MagicNash89 21 сағат бұрын
Dunno, the buy to let market is scarier because its less liquid, and at worst times might be incredibly illiquid.
@kevinu.k.7042 21 сағат бұрын
A great video - again. :) Anyone thinking about going into property / renting needs to look at the local market. National figures are not very useful. For my London flat I get about 4% after overheads and before inflation is subtracted. The government has been increasing regulations too and this looks likely to continue. So, there can be big surprise bills. Insulation and new electrical standards are current examples. I am now selling my flat. It just does not have the yield in the current market conditions.
@Pensioncraft 20 сағат бұрын
Thank you for sharing @kevinu.k.7042 and thank you for support us on KZbin! Ramin
@paulclarke1078 21 сағат бұрын
Thanks for the great video, Ramin! I ventured into buy-to-let early because it seemed like a popular way to make money. I didn't know anyone with a stockbroker or fully understand stocks back then. Now, with mobile apps simplifying stock investments, I've been tempted to diversify. It's nice to invest smaller amounts rather than wait for a property deal. Overall, I'm happy with my decision since owning properties and earning rent provide security. I agree with you-having real estate to rely on helps me worry less about equity fluctuations. While we tend to stick to what we know, it's good to step out of our comfort zones and learn, especially when we're young and have time to recover from mistakes.
@rajshu6408 21 сағат бұрын
Thankyou.
@MarkCW 21 сағат бұрын
I'm roughly 50/50 between financial and BTL net assets which works well for me. The BTL gives me a steady income so that I don't have to keep on drawing down from my equities. I use an agency (10% commission) to reduce the hassle of maintaining the properties. If you look after your properties well the costs are high (24% of gross rent n my case). The rental income has gone up faster than inflation but I do worry about interest rates and inflation coming down over the next 3 years.
@jameswalker366 21 сағат бұрын
Fun fact: The prices of Prime Central London residential property has not moved since 2014. In fact, it has dropped slightly. In inflation adjusted terms, there is a very large loss.
@user-xu5vl5th9n 21 сағат бұрын
Efficient market theory. Property is very individual and there is a lot of scope for inefficient pricing which means more scope for gains for somebody who understands what they are doing. Most stocks are efficiently priced, except if you have inside knowledge which is illegal.
@i6power30 21 сағат бұрын
Both are for boomers who missed out on bitcoin.
@expelleddux 22 сағат бұрын
Would the volatility of someones single house be the same as the property market that contains a variety of housing?
@Garcia061 22 сағат бұрын
Bingo
@adm58 22 сағат бұрын
Apart from the great expense and hassle involved in buying and selling and managing property, its great problem is that any money tied up in it can't be gradually spent down. I'm 65 and want to spend my capital, eroding it over time so I even rent where I live. I have pensions to cover my basic costs. I can't see how dying rich is avoidable if invested in property and relying on rent for income.
@JohnSmith-gy8rc 21 сағат бұрын
Borrow against the property so the rent covers 110% of the loan payments and spend the capital.
@VoiceOfThe 21 сағат бұрын
You mean equity release. That’s a bad way to go. Run the numbers based on the interest they add. You pay back eye watering amounts.
@adm58 21 сағат бұрын
@@JohnSmith-gy8rc how can that be done when retired? I doubt I could get a mortgage and even if I could the max age limit would mean only very short term. If I could find a way, I would.
@adm58 20 сағат бұрын
@@VoiceOfThe yes, and ER effectively removes the potential to relocate as that could cause big problems and expenses.
@JohnSmith-gy8rc 20 сағат бұрын
@@adm58 Downsize then - there is always a way to release equity from real estate.
@Chris-lr2qb 22 сағат бұрын
I'm already invested in property: the one I live in. My conclusion is therefore diversification: If some unforeseen event causes all property to become worthless or unliveable, then at least I'd have alternatives (assuming the world didn't also end). Also, homes are supposed to be homes, not investments. This country's obsession with eeking a return out of vital resources has to come to an end.
@Garcia061 22 сағат бұрын
You’ve got no mortgage. Let me guess.
@dlc2479 21 сағат бұрын
The house you live in isn't an investment
@kevinu.k.7042 21 сағат бұрын
@@dlc2479 It can be. Draw down mortgages, and home reversion are examples.
@Chris-lr2qb 16 сағат бұрын
@@Garcia061 Yes, I do. What's that got to do with anything?
@Chris-lr2qb 16 сағат бұрын
@@dlc2479 What? Of course it is. I'm paying for a roof over my head, which provides me with the opportunity of a comfortable life. Not every investment requires a purely monetary return.
@jjmstudios 22 сағат бұрын
I invest in both… and property outperforms the stock market and has less risk
@JevansUK 22 сағат бұрын
WTF
@M8d9R 22 сағат бұрын
Downsides to property 1. Illiquid 2. Fees 3. Tax treatment 4. Maintenance 5. Legislative headwinds Long term they are close competitors, each one's utility will depend on the individual. It's not the case that one is simply better than the other. Opportunity exists in either one
@Garcia061 22 сағат бұрын
Historically? Don’t think your comment is going to age well. I’d like to see your returns on property after deducting council tax, CGT, stamp duty, maintenance, illiquidity of disposal of asset. The list goes on and on. Oh, mortgages too, almost forgot 😂
@dlc2479 22 сағат бұрын
What's your yield?
@jjmstudios 21 сағат бұрын
@@Garcia061 clearly you don’t have a clue what you’re talking about. I don’t pay capital gains tax as I don’t sell the properties and if I did, it will be corporation tax as they are owned in a limited company structure. Also, I don’t pay stamp duty as the properties I buy are uninhabitable and stamp duty is non-payable on those types of properties. Also, maintenance costs are dealt with on a full repairing and ensuring lease by the tenant. When I refinance that’s classed as debt and it’s not taxed. Please do your homework before you make silly comments.