4 properties - no other assets

Brendan said:
elainem

The real problem going to an advisor is that you might well get very opinionated advice expressed in broad generalisations with no evidence to support those generaliations. You may also be subjected to totally inappropriate analogies which would lead you to wrong conclusions.

Brendan
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......and the difference between that course of action and posting on an anonymous website is...?
 
Re: Advice re property assets needed

Brendan said:
I
Elaine is new to this area. She is trying to grapple with some difficult issues. She is not a sophisticated investor. Talking about covered options and foreign investments will likely make the decision so complex, that she does nothing about it. Brendan
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Completely agree with this. Happened to me. I may not be the sharpest tool in the box but I'm certainly no dolt either. However, when it comes to stocks and shares I find it all very confusing. The people 'in the know' seem to give too much info and even conflicting info. My brain starts to hurt and I just leave my money in the bank albeit at a good rate. I know this is foolish and I might just do as Brendan suggests. Maybe if I start at this level I can gradually learn the ins and outs of investment!

I am actually in a similar position to Elaine although at mo don't have her cash shortfall. Considering selling 'gold' in D4. Unfortunately most properties in D4 are not gold but red brick and mortar. They are old so need constant attention in order to stop them falling into a state of disrepair. If you do not have cash to maintain them they can be a nightmare and cost a fortune.
 
Remortgage some of the D4 properties and proceed to a leveraged investment.

With that much equity you can make a significant return from property not necessarily in ireland.

Going into shares without leveraging leaves you in an unleveraged position which to be frank is stupid.

Leverage / Gear that money into an investment.
 
ecstatic said:
Remortgage some of the D4 properties and proceed to a leveraged investment.

With that much equity you can make a significant return from property not necessarily in ireland.

Going into shares without leveraging leaves you in an unleveraged position which to be frank is stupid.

Leverage / Gear that money into an investment.
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Would you consider advising OP on the risk associated with a leveraged investment?
 
Hi! Ecstatic, I can't leverage the equity because I am dependent, almost entirely, on the rental income to live for the next couple of years. I am a stay at home mother of two children under five, and cannot see myself going back to work until the youngest is in school, in two years time, or even until he starts first class -that's why I have cash flow problems at the moment.
 
Hi F Kruger

Look at the advice which follows from ecstatic. It sounds clever - it uses big words like leverage. "Gear that money into an investment".

It is so totally inappropriate to ElaineM's circumstances. If a broker gave that advice, there would be no one to challenge it and the client would probably follow the advice.

On askaboutmoney, it is challenged immediately.

That is the difference. I have been astonished by some of the suggestions made on Askaboutmoney. I have been equally astonished by some of the suggestions made by brokers. They are almost always corrected on Askaboutmoney.

In this present case, ElaineM now has the benefit of many opinions. I suppose there is no right answer. But she at least has a full range to choose from.

Brendan
 
I would have to say I largely agree with the suggestions in Brendans first post, sell at least one of the properties (like others I'd suggest the bigger D4 period property as the maintenance on this one seems to be a significant issue).

As suggested by a few others I would however also be considering looking at investing in ETF's other than just the ISEQ one especially something like the DJ Eurostoxx which is denominatated in Euros. I take Brendans point about over complicating things but I would like a little more diversification away from Ireland say 50% ISEQ ETF and 50% Euro Stoxx ETF.

(Personally if I was lucky enough to have 2m+ to invest I'd be putting probably 60-70% between ISEQ & Eurostoxx ETF's and the balance in overseas and alternative strategy ETF's but for Elaine the simpler the better.)
 
Taximan said:
You are receiving some very contradictory advise you have people telling you to sell D4 properties and invest in ISEQ ETF's. What stocks dominate the ISEQ - Banks! where are banks making their money mortgages What effect will a property crash have on the Banks - very negative i.e ISEQ crash, and equities will have a far quicker correction then Prop.
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Even if banks make up 40-50% of the ISEQ you are still diversifying somewhat

a) Yes the banks are exposed to Irish property but unless you believe most the Irish banks are so overexposed they will fail in the event of a property downturn (unlikely IMO) they do have other revenues and overseas operations that will cushion them from a complete collapse in share price.
b) 40-50% in companies exposed to property is still less than 100% in property, yes you could diversify even more but its still a lot better than nothing.
 
Hi! Everyone, thanks again for your replies. Brendan, this might not be the thread to ask this - but if I invest in the ISEQ EFT how does this affect the children's inheritance - i.e. can my investments still be left in trust, so that my children get so much of an income each year. Also, is the inheritance tax the same (I have a S. 60 policy). Are there any advantages or disadvantages to leaving money in this way to my children. Thanks for your help.
 
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