The Bubble Goes Bang

I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Sunday 21 September 2008

Suze Orman: US Buy-to-let horror story



The moral of the buy-to-let story is that it is a great business, IF you have a big deposit and lots of working capital and you treat it as a long term venture. Buy-to-let is not an investment, it is a business lone.

The business is ultra cyclical and you have to expect periods of years where it makes no money. You have to be prepared to wait for the next boom.

Do not gear yourself 9:1 ! It looks great until property prices fall and the rent dries up.

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Check out the rest of this blog here.
Posted by AC at 21:23
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