As someone who bought a house a few years ago and has since watched it drop in value faster than an athlete who just lost an leg, I am well aware that the property market is really struggling, and is set to continue to do so.
So this begs the question: If property is no longer the solid investment that it used to be, could websites be the new boys in town?
There are of course, many factors at play, but I was recently looking at an apartment in a tourist area in Europe, it cost $200,000
I am told that I could rent that out and if I do it right, I could cover my mortgage.
In other words, I could break even.
Now, on the other hand, I could purchase a large entertainment website which also can be bought for $200,000
However, this site is making $7,000 profit per month.
Let’s assume the mortgage on the apartment is $700 per month, and the re-payments to finance the website are $1,000 per month, that is still a $6,000 per month advantage to the website.
I would love your opinions on this, considering the current climate, if you had to choose, would you rather invest your money into property, or into a website?
Midascode
Keith Mander says:
I don’t particularly like this site being sold. But let’s say it was great – the sticking point I have is: how do I convince a bank to lend me a huge sum of cash for a pie-in-the-sky (at least to them) asset?
midascode says:
Keith,
I thought the same thing mate.
It was partly on the assumption that you have some money to invest. Even houses require BIG deposits in the UK now, so you need some cash.
If you have $50,000+ put aside, I am confident you wouldnt have too many issues getting a loan.
Many site owners would consider some sort of payment plan as well.
BTW, not a big fan of the site in question either, it was only used because it matched the valuation of the apartment.