[Investy]

People say 'I will get a decent return' but what exactly does this mean?

We need to factor in the following:

1) The cost of you providing the capital deposit. This will be a cost in terms of the interest lost on the money had it been sitting in the Bank and / or the interest charged where you have raised the deposit on property you already own.

So many of us seem not to facotr in this cost. Just saying "my property went up £100,000" tells us nothing.

2) The exit costs - selling agents usually charge heft fees when you come to sell - on

3) The management and ongoing costs. I have seen posters with supposed top notch inbvestments on Polaris World who claim all thier rent is swallowed by these costs (dont forget Accountancy costs and FX rent income) transfers

Despite these PW properties making no net income profit, many agents still promote them as a good investment??
This illustrates just how many people really do not understand investment.
Remember also that people who buy these properties have usually lost interest on money that would have otherwise been in the Bank, or worse still pay interest on the depsoit which was raised against a UK property and the balance on a foreign mortgage.


I RECKON 80%+ OF THESE SO CALLED 'INVESTMENTS' ARE NOT INVESTMENTS AT ALL, JUST LIFESTYLE PURCHASES.

In other words, it is not easy to make a total worthwhile return.