Manage episode 274835499 series 2342628
Join the debate as Kevin dives into the age-old question of investing. Should you invest in property or stocks? In this insightful episode, Kevin shares his story of property investing success and what you can get out of property that you simply cannot with stock market trading. Learn the differences in return, how to leverage and liquidate and the reasons why property has created more millionaires than any other investment strategy.
- Property gives you a tangible bricks and mortar asset that you can assess before buying and you’re able to control your return and plan your investment more easily than stock market investing.
- Property is a lot more illiquid than the stock market as you’re able to get your investment back out completely (sell) within a few weeks, however, stocks and shares can be sold instantly and are a more liquid investment.
- Returns in the stock market can massively fluctuate and the value of stocks can move based on the emotions of investors and external factors rather than the actual value of the stock.
- Investing in property gives you far more control when leveraging. You can outsource to a letting agency or deal sourcer but you still remain in control. With stocks, outsourcing to a broker doesn’t give you the same level of control.
- To the amateur investor, stocks give you a higher return, however when you successfully leverage the bank’s money you can make far more from property investing. For example, earning 3% of a £400k investment (£300k of the banks money) with property vs 8% return of a 100k investment in stocks.
- The economy moves in boom or bust cycles and property is more recession-proof as stocks are more volatile. Since the last recession property prices recovered, mortgages became cheaper, interest rates were lower and rents increased. Giving property investors a higher monthly cashflow.
“Your comfort with risk will help you decide what to invest in.”
“Property was the one thing that I wanted to spend the rest of my life doing”
“More millionaires are created through property than anything”
“The richest people on the planet either made their money through property or invest their money into property”
“When Covid hit the stock market took a plunge and the property market reminded stable”
“Property can give you a 50% extra return on stocks when you know how to leverage”
“Leverage is the key to success in property”
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.