nottheaverageactuary

Actuarial news and views from Cape Town and beyond

Have you considered investing in your own property?

1 Comment

Have you ever considered investing in your own property?

Well you better start soon cause you all going to qualify at the end of this year and will have to decide what to do with all that $$$$$$$!!!

I’ve found two articles that you’d better take a look at, obviously you need to do more research that this but it is a good starting point.

The first article is a very optimistic article and gives the advantages and importance of property investments.

http://www.entrepreneur.com/article/228506

But we all actuaries, so the second article is focussed more on the risks of property investment that should be considered so that we understand the risks faced and can apply some of that ARM risk mitigation knowledge. 🙂

http://www.sharenet.co.za/marketviews/article/10_points_to_consider_before_buying_that_investment_property/1667

 

Enjoy, and remember the best money you can use to make more money is other peoples money!!!

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One thought on “Have you considered investing in your own property?

  1. Hmm. Some questions about the sharenet article:

    – The comparison between equity, cash and property investments seems flawed to me. Can anyone else see the holes in their approach?
    – Running yield vs. capital appreciation – the article seems to confuse these – how should they be taken into account?
    – They seem to have no concerns about rental voids – is that realistic?
    – Some of the numbers seem just pulled out of thin air: “don’t accept a rental property with a rental yield lower than 7%”. Surely this should be relative to some economic indicators?

    I am not sure if Mr van der Meer would be my ideal source for property investment advice. Anyone see any better online guides on what is a good investment property?

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