8 aspects that question the buy
Friday, January 10, 2014 -
In recent years bulding was positioned as a favorite investment of the Spaniards. Thinking about the price of housing never goes encouraged many people to buy a flat with the intention of selling in the short term to achieve major gains. However, , a home that is not used is a bad investment. Further believes that investing in a home takes more costs to invest in stock market
We can consider eight arguments:
1. housing is a valuable asset but believes that a house that is not used is a bad investment. "You have to paint it, fix it, maintain it, pay for electricity, water, taxes ... If we estimate that the annual maintenance cost is 1% of its value in a hundred years will have spent on maintaining housing an amount equal to what it cost us, "judgment
2. indicates that for rented accommodation had been as profitable as the bag in the last 100 years should have earned an annual return of 6.08%, which is the actual appreciation rate dow jones bag wall street in the last 100 years, including dividends and adjusted for inflation
3. It's Not true that the price of the houses dont goes down
4. All investors can buy shares but is not possible for everyone to purchase houses for them rented.
5. Investing in housing costs leads many to invest in stock market. Input, have to pay for a flat 7% of transfer tax, to which must be added between 1% and 3% in registration fees and notary. In total, the cost ranges between 8% and 10% of the home value. But the fees and expenses to buy shares ranging between 0.2% and 0.5%
6. To buy a good house needed a lot of money. For this reason, many people invest in low-quality housing and unattractive areas, which in the long term ends up not being profitable
7. Housing investment diversification does not allow the majority of investors, they should put all their savings in a single well
8. Manage a portfolio of stocks is easier to manage property assets, says Serrano. Buying or selling a home is more complicated and takes longer to do the same with actions
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