Is stacking silver really worth it??

[fishtaco]

Be curious the advice given to a young couple with a small child priced out of the property market were to do? Keep saving that deposit year in year out whilst the market gets away from them. What is the guaranteed compounding interest on savings these days?

It's a tricky one.

The advice of a Canadian investment advisor that I read fairly frequently would be for them to fight off their house horniness and remain property virgins. He would argue that financially, they are much better off to rent and place their savings into a well diversified investment portfolio. Part of his argument seems to be that it makes very little sense for the typical consumer to use all of their savings and then borrow an additional $500k and use that money to buy shares in a single company, say Ray White, Commonwealth Bank or BHP. Thus, why would it make sense for them to do what is roughly the equivalent when buying a house? He seems more comfortable with buying a house if it's share of your personal financial portfolio is a lot smaller, I'm guessing less than 50% of your networth...

A second part of his argument is that for many places in Canada (and probably Australia as well), it costs you far less to rent a place then to own that equivalent place with rents being much less than the costs of mortgage, maintenance, taxes, insurance, etc. He further argues that your investment returns in the stock market if you used your house deposit and the cost savings between buying and renting would exceed the appreciation in house prices over the longer term.

Agree with invest in property while still renting is better off then paying a mortgage (living in your principle place of residence) while investing in property...with the spare cash u can then invest part in pm's...

Cheers, HAPPY STACKING

This I feel can also be dependant on your financial future and future guaranteed wealth prospects!

It can cost upward of $4000 to move rental properties if the owner wants you to vacate that rental,and for an average family paying rent on a house with an investment property mortgage the burden of rental moves can be too great for their immediate finances!

People are investing in what they cannot afford to invest in causing many onward sales and many unnecessary vacations of properties by renters.

There is no easy way unless you are already financially secure enough to actually buy and rent property.

Rags to Riches stories are just media propaganda filling the heads of the population with false hope! making the wealthy wealthier!

When Richard Branson stated he "started with nothing" you have to realize his grandmother dared him as a child to swim a lake for 10 bob, that 10 bob at the time could have fed an average family for a week! Rags to Riches propaganda! his family had enough wealth to pull him out of debt if his chance taking didnt pan out, so he was able take risks common everyday people now think are just as available to them!

Views expressed on much Saturday night beer