Opentrain Share Tips
Frequently Asked Questions
Wouldn’t it be safer put my
money in property?Most people already have a significant proportion of their wealth tied up in their home. This may well have gone up in value over the years, but that does not necessarily mean it would be wise to make extra property investments. The more you invest in property the more you stand to
lose if house prices fall – particularly if you have a mortgage. Your loan won’t fall in value just because your property does. You could even find yourself with “negative equity” where the value of a property is less than the mortgage.
Even if property prices continue to rise, individual properties can be affected by problems beyond the owners’ control, such as flooding and noisy neighbours. With a buy-to-let
property, rents may fall and it can be difficult to find tenants.
None of this is a reason to avoid property altogether – after all, everyone needs somewhere to live and most of us prefer to buy our own home. But you need to bear these factors in mind if you are thinking of investing in property. It may be best to think of property simply as one aspect of a balanced portfolio, not as the mainstay of your financial planning.
Introduction
tutorial for the individual self-investor. Useful hints and tips
beginning your first venture into trusts / shares.
www.opentrain.co.uk/sharetips. Share tips, share tutorials,
introduction to investing in shares and funds