DO YOU ACCEPT PROPERTY INVESTMENT IS THE BEST THING YOU CAN DO

Just think of the mortgages your children will have to take out to get on the property ladder as first time buyers. When you do retire abroad and sell your UK property you will be able to lend them deposits. And the good news unlike your UK home if you sell your 2nd home you can spend the profit.

If you sell your UK home you still have to buy somewhere for the same price or even more, unless you are downsizing. If you go into a care home you will end up giving your UK home to the government to pay your fees. Many people like to dabble in the stock market. Some people are very successful at this. The problem I have with it is that investing £ 100,000 buys me £ 100,000 in shares.

A rise of 10% means I earn £ 10,000. Not bad? If you buy a £ 100,000 property, and let's say you buy it is the traditional way for the moment, then you'll be borrowing £ 90,000 (90%) from a mortgage lender and pay a deposit of £ 10,000. Now say this too goes up 10%. How much have you made? 10%? No, actually you have made £ 10,000 on your £ 10,000 investment so a return of 100%. And even better if you went into any high street bank to borrow £ 100,000 to buy shares in their bank what percentage would they lend you ? The answer is nothing because they know their shares can drop tomorrow, ask them to buy property and most banks will lend 100%.

If you could buy a home at the prices they were 20 years ago, would you? Every one would, simply because they could sell it today at todays prices and make a HUGE profit So think SERIOUSLY about investing in a 2nd home abroad. It will probably out perform your pension fund or ISA or even the stock market. We are all worried about the future when we retire, the warning signals are clear. Endowment policies are failing to grow sufficiently to repay endowment mortgages even though it was expected to happen. The Government is warning us to make our own private pension funds to make up the shortfall with the state pension.

If you look at what your savings for your retirement can buy in real time or you are a first time buyer frantically trying to save a deposit house prices are rising several times faster than inflation. I remember in the 70s a friend winning £ 25,000 on the pools he used his win as deposits and bought about 10 houses on mortgages and rented them out to cover the mortgages. As the houses grew in value he remortgaged to release more capital for more houses and the new tennants covered his new mortgage. And now is a multimillionaire through property and guess what he has lost his job. We can not all be lucky and win the pools but we can start on the road to property success with out any capital. If he had kept the money in the bank with his £ 25,000 he would be lucky to put down 10% deposit on 1 house today.

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