Rental property

The Investor 28 June 2005

House prices should worry reader. I’ve just re-read an email from a reader, and it concerns me — especially in light of a recent Economist cover story. The reader put $80,000 into two rental properties six years ago, and it has turned into $255,000, “with very little effort on our part.”

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The Investor 19 April 2005

The inherent differences between property and share investments. There’s a fundamental difference between investing in shares and property, a reader says in an email. “With a stock there is always the risk of bankruptcy of the entity you invest in, and the investment you make becoming worthless,” he writes.

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The Investor 5 April 2005

Gearing can boost returns, but also risk. Gearing — which happens when you borrow to invest — comes at a price. And I’m not only talking about interest. While gearing makes a good investment better, it also makes a bad investment worse. People who gear boost their risk.

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