Jan 2019

Why Property?

I speak to a lot of people about property, the benefits, the excitement and the returns. Almost always I am asked… why property? Then why not stocks, share… bitcoin? Well bitcoin will have to wait for another day but for now, let’s look at stocks and shares.

Ghosn and Nissan

Why not stocks and shares? I am not telling you what to invest in. Investing is such a personal journey. What works for one person may not work for another. Stocks and shares can be bought and sold in an instant. You don’t have to maintain stocks and shares and sometimes they pay a decent dividend.

Personally I have never been that interested in stocks and shares. I prefer being able to see my investments first hand. Property is slow and stable vehicle for wealth creation. I’m risk averse, and stocks and shares represent too much risk for me. And finally, I like being able to influence my investments and the profit from my own hard work. By that I mean, paying for a renovation or an upgrade to influence (increase) rent. It may only be an increase of ¥5,000 a month but multiply that by 12 months or 5 years and the returns start to stack up.

Why this topic? Why now? A good question and if you are not in Japan you may have missed the stunning case of Nissan and CEO Carlos Ghosn arrested recently. There is a huge amount written about this case from both sides and I am not going to go into the story. However, let’s look at Nissan’s share price, falling 10% on the news of Ghosn’s arrest. No one could have predicted that Ghosn would be arrested after being the saviour and darling of the Nissan Renault alliance. An alliance that saw Renault under Ghosn’s leadership save Nissan from the brink of collapse. It is an interesting story and the local media has been consumed by this topic since Ghosn’s arrest in November.

So is this arrest the reason I stay away from stocks and shares, yes and no. It just brings home the fact that I could have invested good money in Nissan to lose so much value due to a situation completely out of my control. No doubt Nissan’s share price will bounce back but in the meantime, there are plenty of investors out there wishing they hadn’t invested.

Let us know you reasons for your investment choices, it’s always goo to learn what others are doing and why.

For more information on Nissan’s share price, click below.