Property or petroleum – MoneyWeek

OneofmyfavouritenewspaperarticlesofeveryweekisthecelebrityinterviewonthebackpageoftheSundayTimesMoneysection。

Thereissomethingveryspecialaboutcelebrities:they’reextremeversionsofordinarypeoplewhenitcomestoeverythingfromwhattheyweartowhattheyeatandhowtheylive:onelookatwhatthey’reuptoandyoucanguesswhattherestofthepopulationiseitherdoingorwishingtheyweredoing。

Andsoitiswiththeirmoney。

Considerthisweek’sinterviewwithCaprice(who,bytheway,isnotjustamodelbuta“model,actressandentrepreneur”)。

Capricetellsusallabouthercashasfollows:“Mybiggestinvestmentshavebeenproperty。

SinceI’vebeeninEnglandI’veboughtsixplaces。

IfIbuyapropertyasaninvestmentIfixitupthensellit。

ThelongesttimeI’veheldontoaflatisthreeandahalfyears。

”Afterfurtherdiscussionaboutherportfolio,Capricetellusonemorething。

“Mymotto,”shesays,“islowrisk。

”Hmmm。

Iwonderifshe’sintherightmarket?

Still,sheisn’talone。

Therearemillionsouttherewhoreallythinkthatbuyingpropertyisalow-riskpropositiondespitethefactthatitclearlyisn’t。

AndnotjustinBritain。

IamgettingincreasingnumbersofenquiriesfromreaderswhowanttoinvestineasternEurope。

Now,Icanseetheattractionsofthearea。

Muchofitisstunninglybeautifuland,onthesurfaceatleast,thehousesforsalelookcheap。

ButmostofthepeopleIknowwhoarethinkingofbuyinginPolandandEstoniahavebarelyvisitedthesecountries(stagweekendsdon’tcountasvisits),sowhyonearthwouldtheywanthousesthere,particularlygiventheextraordinarylegaldifficultiesofbuyinginmanyofthesemarkets,tosaynothingofthelanguageproblem?

Thisabsurdbusinessofwantingtoownhousesfor‘investment’purposesregardlessofwheretheyarehasjustgottoend。

What’swrongwithinvestingyourmoneyinmarketsyouunderstandandthenstayinginhotelsonholiday?

Onethatiscertainlyeasytounderstandistheoilmarket。

Lookaroundyou。

Prettymucheverythingreliesonoil,eitherforitsproductionortransport。

Thatincludesyourshoes,yourclothes,yourfacecream,yourtoothbrush,yourplasticbottleofwater,thebananasinyourfruitbowland,ofcourse,yourcar。

Oilisn’tjustacommodity。

It’sthecommodity:itdriveseveryaspectofourlivesand,ifyouinvestinit,you’llbeabletoaffordtostayinanyhotelyoulike。

Doesn’tthatsoundeasierthanbuyingabungalowinBulgaria?

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