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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (59244)	3/17/2017 2:29:51 AM
From: bruwin	Read Replies (2) \| Respond to of 78813

I fail to see why renting can be better than paying towards your own property and your own asset. Needless to say, there must be a reasonable expectation of the appreciation of your property. If you pay someone a monthly amount to stay in their property, compared to paying into the bond of your own asset, then what do you have at the end of the year, or years ? You certainly don't have an asset that belongs to you that you could one day very likely sell for a profit. And your landlord has increased his wealth at your expense. As I've mentioned before, and as E_K_S has correctly stated, one of the most important aspects of a property investment is Location, be it Residential or, quite often as well, Business.

To: Spekulatius who wrote (59244)	4/1/2017 3:47:19 AM
From: staring	Respond to of 78813

Thanks for the advice. We quitted the deal. The areas were not right. We are looking for a house to live in. We live in Lisbon, Portugal. We are looking for a house 7km from the city center, in an area with good transports and facilities. The yields are between 4.5% and 5%, which is my floor in terms of yield. In the city centre they are well below 4%. In market terms I can finance the acquisition at 3% fixed rate. But I work in a bank where I can finance at 3/4 of Euribor (part of the fringe benefits package). I think in Portugal thinks are still acceptable in most areas, but in Lisbon, after the crisis the prices are going up fast, both rents and properties...