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To think diversity your portfolio is wise

(8 Posts)
Calamariss Fri 11-Mar-16 12:55:43

My sister has built up a property empire in London (8 flats) over the last four years.

She asked for my advice and I said to DYP. She didn't like this and said property was the only investment she knew.

I think she would be wise to try other things. It's her money so I said no more.

But DYP is a good idea really right?

ilovesooty Fri 11-Mar-16 12:59:26

So you haven't introduced her to spread betting?

tootsietoo Fri 11-Mar-16 13:07:23

In theory. But if she knows about property and understands it and the market, then she can really minimise her risks by sticking to it. If she doesn't understand other types of investment and doesn't want to put in the time and effort to understand stocks/gilts/funds/whatever then she has to hand her money over to someone else and she doesn't necessarily know that they will manage her money more effectively than she can in property.

Well that's my and DH's theory anyway. We are both surveyors and we would far rather invest everything in property because we can pick the right properties that we are confident will not fall in value and will not suffer long void periods with no income. I also manage them very hands on to maximise income and minimise voids. We get a better return than if we invested in equities and I feel confident that what we own is retaining value and that the income will keep coming in.

I guess if you have millions to invest then perhaps that is a different kettle of fish altogether and you probably would consider diversifying.

LittleLionMansMummy Fri 11-Mar-16 13:14:27

I would have thought it's a fairly safe bet to have your money in London property. Other areas, not so much, but London property is pretty rock solid isn't it?

BadLad Fri 11-Mar-16 13:26:28

Empire?grin

ilovesooty Fri 11-Mar-16 13:31:49

I don't think 8 flats sounds like an empire either. Still she's seemingly far more sorted and financially secure than the OP so why she even asked the OP for advice is what I don't understand.

Pollyputhtekettleon Fri 11-Mar-16 15:33:22

So OP you gave advice you were so unsure about you had to come check if it was right on mumsnet........

That's not usually how advice works.

ilovesooty Fri 11-Mar-16 15:35:53

I don't think anyone who ends their query "right"? is really interested in what other people think. Their subsequent posts usually reinforce and confirm that.

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