jaybee3:


Minimise risk
Longer term outlook
OR
It's simply a home not an investment

salford:

i guessed as much. I worked in credit card lending for 7 years and i know he wouldnt even pass the banks internal lending process as the first thing checked is the applicant's status in the country. The fraud must have originated from a branch. He waited for his permanent residence to australia to get approved before striking the bank.lol

jaybee3:


Why do they bother rating the universities If the quality is the same across the continent?

Value for money simply means you get more value attending the best schools

Ggggggrrrrrhhhhhhhhh

If it's going to cost you roughly the same amount of money to attend Harvard/MIT or London Met, which would you choose?

ephi123:


I don't think you minimise risk by tying such an amount down. Infact, it's the reverse, especially if there is no fallback fund anywhere else.
Option 2 I see reason with.

erico2k2:

Well since I live in London I rather go to Oxford cos it will cost me more to relocate to the US for Harvard .

ephi123:


Okay I see.

For those who do, I wonder what the rationale is as it doesn't make financial sense imho, or maybe it's the emotional feeling of fully owning your own home. Or money laundering.

ephi123:


Okay I see.

For those who do, I wonder what the rationale is as it doesn't make financial sense imho, or maybe it's the emotional feeling of fully owning your own home. Or money laundering.

jaybee3:


You actually do if you consider the following:

Demand and short supply is certainly the dynamics dictating the outrageous price and that will sort of make your investment safe and somewhat assured on the future value ish

Whereas spreading the money across the same asset class but different locations will have to worry about oversupply

As an example, institutional investors rarely invest in low end properties due to the same issues outlined above

jaybee3:


You obviously don't get it do you?

You don't necessarily have a business going to oxford if you intend studying electrical engineering since MIT delivers the best value

InvertedHammer:


Mostly Chinese investors.

For citizens, there are no incentives to do so.

erico2k2:

Homes these days grow in value . The cheapest house where I live is now worth £1.2m as of date 18 years ago it was £200k

erico2k2:

I do get it but where I'm steering you to is this
In the west thier universities have the best of the best
Let me give you an example where is the best place in the world to sturdy elect elect ? Japan , us or UK or Germany ? ?

ephi123:


I beg to disagree.

How does demand/short supply make an investment safe after it's been fully paid for?

Using this same hypothetical scenario, the person pays $800k cash for the property with no fallback fund. Let's assume he/she loses the job/source of income, although there will be no mortgage payments or rent, other living expenses will still be there.

If the same person had split the $800k into 4, and used $200k each as a down payment for 4 separate properties, in the case of any unforeseen event, there would be extra income from 3 properties, and those income can even be used to pay off the main residence. Plus he could borrow more from the bank using any of those properties as collateral.

I know people have different risk profiles, but cash down payment in my opinion is actually riskier.

kimbra:
You said the gospel truth op. Those people live on credit card. Always working to pay off outstanding loans.

Sit down there make shoe dey wear you. Is it everybody that lives on cc? Nice post though @Op

ephi123:


Is that because they cannot easily get a loan from the bank leaving them with no option but to pay in full? What exactly is the incentive for them..

jaybee3:


We don't have to engage in nasty arguments na.

So here is a background Info about me.. I'm happily married with a wonderful 10 year boy BUT i've met enough women that doesn't share the traditional views about marriage. You will agree that there isn't a one size fits all approach to love right?
That's the point i'm trying to make you see

Marriage is good no doubt but it doesn't guarantee happiness if that's the desired end result

jaybee3:


I didn't know the argument was based on fully paid investment

Thought the figure was for downpayment

So yeah you are bang on point

jaybee3:


Demand being constant

Future Value of asset is sort guaranteed because demand stays constant

Those are the incentives

jaybee3:


Still MIT bro

That's the benchmark

I'm an elect/elect engineer so i should know

ephi123:


I have no doubt homes grow in value, my question is more about the advantage of cash down full payment vs leveraging the same amount.

ephi123:


I have no doubt homes grow in value, my question is more about the advantage of cash down full payment vs leveraging the same amount.

erico2k2:

That is what you think.the history nd father of electronics is in the UK . is best thought here

jaybee3:


History in this day of age?

UK is not a manufacturing economy

Reality validates the obvious

ephi123:


Hmmm. Was thinking the incentives would be more tax-related...

erico2k2:

Realy.what don't we manufacture ?
Go on let's see.

jaybee3:


Leveraging is highly susceptible to market forces and the assets aren't truly yours so they can be disposed off at a loss as they deem fit when you default

The domino effect experienced during the subprime crash by quite a lot of property investors comes to mind

Your own fully paid home can easily ride the wave if you aren't exposed to the same market forces

henryhemon:

Can I talk to you in private?

salford:

i hope i remember the passord of the email i used in setting up this account.

Lexusgs430:


But she open leg + her bra for ritual initiation, before alarm blow?

jaybee3:


FTSE is dominated by what sector?

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Manufacturing/gx-global-mfg-competitiveness-index-2016.pdf

Alphyno:


Before Nko