property savings plans

We are entering a new way of thinking with property as an investment retirement savings fund. I think we are all agreed that the price of property increases in value by at least the cost of finance. Rents etc can be weighed against upkeep expences etc with the distinct likelyhood of paying a percentage of the principle back. At the end of the run you own a couple of houses or factories whatever and retire with nothing saved for your old age other than property. This is when you take out a reverse mortgage on some of your properties to either pay a pension until you and the loved one kick the bucket or a lump sum to squander on overseas trips and fast women. What better retirement fund is there than that?. You can leave the kids the ancestrial home and your will can read [ being of sound mind i spent the lot so there]. MACDUNK

ASPEX, On what part are we disagreeing?. We have hindesight over the last fifty years, property prices versus finance cost plus rates taxes depreciation etc. We then add rents property appreciation etc.
Simple sums my friend you are wrong talk to all the rich people you know, and pay attention. The share market comes and goes property only goes up. macdunk

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quote:Originally posted by aspex

"I think we are all agreed..."
Sorry macdunk, we are not all agreed, as you will have witnessed by some quite lively discussions here.

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I'm guessing Macdunk was just trying to prod some "lively discussion" out of us Aspex. ;)

Anyone who actively manages their money can do very well in any field of endeavour - be it business, equities, real estate or whatever form of investment or speculation. Also, anyone who does any form of investing will on average be better off than those who don't. The average "property savings plan" will leave the average punter better off than the average net consumer.

Passively owned residential real estate is spectacular for its "averageness" and for most punters requires high levels of debt supported by modest cashflows. Commercial property is arguably superior as cashflows are generally higher and debt levels lower but this form of investment normally requires more capital and a modicum of commercial intelligence.

I'd certainly consider property trading, property development and selected commercial property investments for my investment universe but I'm happy to leave the average "property savings plan" to those who like working for a living.