buy appartment or buy energy shares

stove_salesman

for example , a two apartment in a particular city in Ireland ( not Dublin ) will pay me around 6700 per anum for a purchase price of 90 k when all duties and legal fees are accounted for and apartment management fee is deducted , I have excluded property tax as I don't know how much that would be

alternatively I could buy shares in shell which due to the collapse in oil price has seen its share price static since this equity bull market began , current dividend yield is 6.5% and it has not failed to pay a dividend since 1946

am I completely mad to believe the oil major is the better buy both in terms of secure income and long term asset appreciation

im a cash buyer I might add

Tugboats

stove_salesman wrote: »

for example , a two apartment in a particular city in Ireland ( not Dublin ) will pay me around 6700 per anum for a purchase price of 90 k when all duties and legal fees are accounted for and apartment management fee is deducted , I have excluded property tax as I don't know how much that would be

alternatively I could buy shares in shell which due to the collapse in oil price has seen its share price static since this equity bull market began , current dividend yield is 6.5% and it has not failed to pay a dividend since 1946

am I completely mad to believe the oil major is the better buy both in terms of secure income and long term asset appreciation

im a cash buyer I might add

I would never put all my money into one stock but I would never put any money into a rental property as I have no interest in being a landlord. . Do you have time to commit to being a landlord?. A mate of mine has a house rented and it looks like a pain in the arse to me regardless of what quality of tennant you have. Personally the only property I will ever have is the one I live in. I would choose to have a 90k portfolio of stocks over an apartment

stove_salesman

Tugboats wrote: »

I would never put all my money into one stock but I would never put any money into a rental property as I have no interest in being a landlord. . Do you have time to commit to being a landlord?. A mate of mine has a house rented and it looks like a pain in the arse to me regardless of what quality of tennant you have. Personally the only property I will ever have is the one I live in. I would choose to have a 90k portfolio of stocks over an apartment

hi

I have a diversified equity portfolio separate from this which is my pension

I came into some money recently and while conventional wisdom is not to put all ones eggs in one basket , I think some companies are unlikely to ever go out of business , beit coca cola , nestle etc

the energy sector is pretty unique in that it completely missed the current bull market , they say there is always value somewhere , my instincts tell me that just because the market hates big oil at the moment , doesn't mean exxon mobil , shell , bp , are finished

Tugboats

stove_salesman wrote: »

hi

I have a diversified equity portfolio separate from this which is my pension

I came into some money recently and while conventional wisdom is not to put all ones eggs in one basket , I think some companies are unlikely to ever go out of business , beit coca cola , nestle etc

the energy sector is pretty unique in that it completely missed the current bull market , they say there is always value somewhere , my instincts tell me that just because the market hates big oil at the moment , doesn't mean exxon mobil , shell , bp , are finished

I agree I own BP and Exxon myself. I wouldnt sleep easy with 90k in one stock but sometimes having big balls pays off i guess

stove_salesman

Tugboats wrote: »

I agree I own BP and Exxon myself. I wouldnt sleep easy with 90k in one stock but sometimes having big balls pays off i guess

is it so much different than having 90 k in one apartment which is effectively a single asset entity

the yield on oil majors right now blows any kind of index fund out of the water , as for whether it dropped another 30% , property could do the same and I cant imagine the likes of shell or bp going completely out of business in the next decade

Tugboats

stove_salesman wrote: »

is it so much different than having 90 k in one apartment which is effectively a single asset entity

the yield on oil majors right now blows any kind of index fund out of the water , as for whether it dropped another 30% , property could do the same and I cant imagine the likes of shell or bp going completely out of business in the next decade

have you looked at any Energy etfs?

stove_salesman

Tugboats wrote: »

have you looked at any Energy etfs?

I have but the yield is only around 3% , too low to focus entirely on one sector , a yield as high as 6% provides a large cushion of safety IMO , Vodafone was a great buy six months ago , its yield is still 5% but its PE is up a lot , I would see Tesco as risky despite the low valuation and strong dividend , GlaxoSmithKline has a dividend of 5% but its at 8 times book and the company is not doing that well overall considering how strong healthcare has been this past six to nine months , Novartis has doubled in value in the past three years ,gsk has fallen

shell on the other hand has a book value of only 1.15 and a pe of 12 , its a victim of the oil glut phenomenon which is playing out since the americans decided to break both Russia and iran via fracking

Tugboats

stove_salesman wrote: »

I have but the yield is only around 3% , too low to focus entirely on one sector , a yield as high as 6% provides a large cushion of safety IMO , Vodafone was a great buy six months ago , its yield is still 5% but its PE is up a lot , I would see Tesco as risky despite the low valuation and strong dividend , GlaxoSmithKline has a dividend of 5% but its at 8 times book and the company is not doing that well overall considering how strong healthcare has been this past six to nine months , Novartis has doubled in value in the past three years ,gsk has fallen

shell on the other hand has a book value of only 1.15 and a pe of 12 , its a victim of the oil glut phenomenon which is playing out since the americans decided to break both Russia and iran via fracking

Tesco have cut its dividend. Heres a good site for dividend investing
http://www.dividendmantra.com/portfolio/

FISMA.

If the OP does not already own property, go with the apartment.

arrowloopboy

FISMA. wrote: »

If the OP does not already own property, go with the apartment.

Did you start again FISMA ,45 posts ?

FISMA.

arrowloopboy wrote: »

Did you start again FISMA ,45 posts ?

Y'up, back for the time being!