Forum Archive Index - February 2002

[hugh webber <hugh.webber@clear.net.nz>]

Good sensible comments Snoopy, I'd add Funds to the Term Deposits mention.

However I was struck by you saying that you wouldn't invest in property shares
because of your investment in your house and that you therefore thought you 
ought
to diversify.

I agree that investment in one's own house is sunk money, its a bad investment.
We do have a flat out the back which mitigates it a bit. But if it wasn't for 
sentimental
reasons and my wife's attitude I'd flog the house off and put it into something 
productive.

And also I'd reiterate in passing Warren Buffett's attitude to diversification, 
he doesn't have
many investments - by number. He regards diversification per se as a method of 
hiding failure
rather than concentrating on success.

But the non housing property is a totally different kettle of fish to the 
housing market.
There are several segments, Property for Industry for factories/warehouses, 
then there are offices
specialists and until it lost the plot Capital Properties specialised in 
government buildings in
Wellington, a very rewarding niche. Shopping malls is another sector and 
apartments another, maybe
there will even be a farm property sector again one day.
These property sectors are marked by the very qualities you were recommending, 
steadiness, growth,
reliability.



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