Tim Bennett Explains: Property or shares? (Part Two)

In the second part of my short guide I look at three key issues for investors weighing up both asset classes.

[nozrep]

the British lingo is blowing my mind. i'm trying to think of all the American lingo equivalents as I follow along. as such, this video is not only expanding my finance knowledge, but also, my linguistic knowledge!

[HoangDuong-miow]

I have been following you since MoneyWeek and you are my favorite financial educator. Thanks for the amazing content!

[eeyves]

Everything in life has pro and cons....for a great protfolio you need both!

[Jeffybonbon]

Can you do an up to date video on this one with the new dividend tax

[nozrep]

is "gear up" in British the same as "leverage up" in American? as in, using bank debt to finance property?

[indianbeer]

great video (as most of other Tim Bennett's finance videos) but I disagree with the way gearing has been explained. Who on earth borrows £100, 000 for a £200, 000 house? People usually borrow a lot more, typical LTV is 10% (not 50% !!) hence gearing is much more than assumed in this video. Now if you start your calculation again from 1971, you will bear equity, istead of £6, 000 you would consider fig of £1200, 20% LTV and same £1200 for FTSE all share.

[tc]

The only reasons property goes up in value are population growth, earnings growth, and inflation. Property isn't even meant to be an investment, indeed in countries like Japan, far more population dense than the UK, property is much more affordable and is seen as a depreciating asset. Whereas in the UK there is this stupid phenomenon that should be outlawed called landbanking, whereby property developers and landowners park their money in swathes of unused land, often in areas that have a dire need of it, just in case they want to use it further down the line. I think holding up land like this and not using it should be taxed!

[martinyable]

I can't apply this to my own situation, since I doubt any bank will lend me £200 K to speculate with, will they ? . I doubt it, therefore a guy to let it is for me, while I slowly add small monthly amounts to store, lol

[Jeffybonbon]

My own feeling is you can have your cake and eat it BTL can be purchased via a Company and then the profits from your company can then fund your pension very tax efficient