Forex versus property investment
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  1. #1
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    Default Forex versus property investment

    Hi guys,

    If you compare forex and property flipping - what would you say ? I am thinking - even though property investment is capital intensive and need high upfront investment - you can have more reliable profits and more importantly when it comes to loss it is more containable.

    You buy a property below market - remodel and sell at a reasonable profit - sounds more reliable since property especially on the very middle (in terms of cost) is always in demand and is not as covered in cloud as the Fx market. There is more information out than that is clouded which it is in forex market

    What is your comment on this ?

    Thank you

  2. #2
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    Hi property invest:
    Property investing has such a huge scope as I'm sure you know. If it is run of the mill housing investment you need to be the handy man and do the physical work yourself to reap the rewards otherwise in my opinion it is a no go. There is always speculating where you buy in one of the major urban centres that are continually rising in price. Auckland, Sydney, London etc.
    One thing about fx though is you dont need to have such large capital tied up?
    Hope that was of use to you friend.
    Craig

  3. #3
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    Quote Originally Posted by element
    If you compare forex and property flipping - what would you say ?
    I'd say that they are not even in the same market. One is a tangible investment where you have equity in an asset, the other being a non-tangible derivative where one is simply speculating.

    Quote Originally Posted by element
    I am thinking - even though property investment is capital intensive and need high upfront investment - you can have more reliable profits and more importantly when it comes to loss it is more containable.
    It's quite funny how it is assumed that FX speculating in this case requires a smaller account than that of purchasing an average house at an average market price. With housing, you need the capital or you can't purchase the house (regardless of being a cash buyer or mortgaged). FX speculation allows 'traders' [terrible term] to open underfunded accounts - that doesn't mean it's correct, and it isn't. It's a misleading fallacy.


    Quote Originally Posted by element
    You buy a property below market - remodel and sell at a reasonable profit - sounds more reliable
    Perhaps this sounds more reliable to an individual who specialises in property flipping, rather than that of a full time successful FX speculator? I should imagine that a successful full time FX speculator would say the opposite.

    Quote Originally Posted by element
    There is more information out than that is clouded which it is in forex market
    This may be true, and I agree that FX info on the open 'free' market is very misguided, incomplete and inaccurate [in most cases though, there are also some really useful free publications and FX forum contributors, too]
    Last edited by Jezzode; 03-19-2017 at 05:35 AM.

  4. #4
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    Quote Originally Posted by element View Post
    Hi guys,

    If you compare forex and property flipping - what would you say ? I am thinking - even though property investment is capital intensive and need high upfront investment - you can have more reliable profits and more importantly when it comes to loss it is more containable.

    You buy a property below market - remodel and sell at a reasonable profit - sounds more reliable since property especially on the very middle (in terms of cost) is always in demand and is not as covered in cloud as the Fx market. There is more information out than that is clouded which it is in forex market

    What is your comment on this ?

    Thank you
    As for useful free information, I recently found this academic publication which I've taken a liking too. Very informative and proven theories.

    "Information is pretty thin stuff, unless mixed with experience."
    -Clarence Day, 1920

    http://freetradingdownloads.com/Tech...A%20to%20Z.pdf
    Last edited by Jezzode; 03-19-2017 at 05:49 AM.

  5. #5
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    Investment in the property market is commitment to a single market, and the assumption is its a one-way trend - upwards - which it isn't.

    The FX "market" is a dozen major markets plus 2 dozen minor ones. Even if you can only go long in forex, not all pairs will be falling at any one time. It is cheap and almost instantaneous to switch from one forex pair to another.

  6. #6
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    Quote Originally Posted by element View Post
    I am thinking - even though property investment is capital intensive and need high upfront investment - you can have more reliable profits and more importantly when it comes to loss it is more containable.

    I think you may be comparing fast-moving trading with long-term investment, there: if you think about long-term investing in an index like the S&P, for instance, that's probably more similar to investing in property?

    For me, day-to-day trading produces far more profit than property investment, and certainly with no more risk.

  7. #7
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    Quote Originally Posted by tommor View Post
    Investment in the property market is commitment to a single market, and the assumption is its a one-way trend - upwards - which it isn't.
    .
    In the UK it is a one way trend upwards in the long term. Government tax changes have made flipping and buy-to-let less attractive.
    In other countries property investment can be riskier as it can take years to find a buyer, something ive never had a problem with in the UK where our limited space and shortage of new homes helps support rising prices

  8. #8
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    After thinking about it a little bit more, it strikes me that probably the key differences between the prospects for each relate to the different skill-sets and more specifically the levels of skill and experience required for each. The success-rates are certainly wildly different, and that's partly why.

    Even someone with average (or perhaps even below-average) property-investment skills is pretty likely not guaranteed) to be able to make money through long-term property investment, but someone with only "average" trading skills will have almost no chance at all to make profits by trading.

    In other words, investing in property is far, far easier.

    Sorry if I'm only stating the obvious!

  9. #9
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    Quote Originally Posted by Carlos Ray View Post
    In the UK it is a one way trend upwards in the long term. Government tax changes have made flipping and buy-to-let less attractive.
    In other countries property investment can be riskier as it can take years to find a buyer, something ive never had a problem with in the UK where our limited space and shortage of new homes helps support rising prices
    Homes under the hamer - many inspired by it - also UK has property in the 100 k range in places where it will get sold. Not true in all markets - but in UK it is (not sure how true this statement is - it is an observation from watching the show)

  10. #10
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    Quote Originally Posted by element View Post
    Homes under the hamer - many inspired by it

    Indeed ... though I prefer "Escape to the Country", myself.

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