realestate's pretty safe. specialy duplex and four plex properties.
On a serious note, if you came into $70,000 - $80,000 cash what investments whould you make, (no boats).......land, homes, stocks, IRA's ..? this money that you turn over needs to make a possitive return for the future.
Im looking for investment opportunities, i just need some direction......................................... ..and no funny business ok !!
realestate's pretty safe. specialy duplex and four plex properties.
do you want to turn over the real estate quickly or hold on to it? are you investing the whole wad into Real estate or just enough to get the ball rolling, you could put a little into Real estate, and some in to the market, Intel is good right now they have some very exciting news coming up regarding communications, computers, and incredible new speeds for both, read a story on that last night, you could invest some into the S and P 500 or as i have for a better, and yes lesser , but veeerrry stable return , the S&P 400 Mid cap market, bonds are good, i could go on, but will most likely bore the crap out of you all, hell blow the wad on WALMART stock and watch it go thru the roof in 5 yrs,![]()
I'd buy real estate but it's not enough money to buy anything more than a lot (dirt). If you find the right one it could be a very good investment but it's a bit more difficult without a structure on it.
If you have the cash flow to pay a mortgage then I'd certainly use the money as a down payment on a single or multiple-family dwelling. You have to be careful to make sure you have something that is cash positive or not much of a negative (again, it all depends on how much you're willing to spend out-of-pocket.
I'm a firm believer in the stock market too. But I don't know how long you're willing to tie up the money. Whatever you do, buy stock in rock-solid companies to minimize your risk (and there is ALWAYS risk in the stock market - but there's also risk in every investment except the guaranteed ones and those usually don't pay much in return).
Congratulations on your good fortune and good luck!
Hot Topic Stocks are allways riseing and doubling once ever two years. This just prooves, little girls still don`t know the value of a doller. As long as this holds true, they will allways rise. My money`s there. I didn`t just say that out loud just now?? SHSHSHSHSHSHSHSHSH!!![]()
Every one will have thier opinion. Mine, Real Estate. That is enouph for a down payment on a rental unit. Rent covers your monthly mortgage and you keep earning value in the home. Take a while of looking and the price has to be right for this to work. Take your time. It is a big investment. Thats how I've done it. Last year, even cleaned out my 401 when changed jobs. Bought more property.
Jerry
$80K should get you into a $300,000 set of units. Buy something cheaper and you could easily have positive cash flow on them. They depreciate on your taxes, but appreciate in real dollars. You can write off the repairs and expenses. (Which allows for a bit of fudge factor in case you buy too much tile that you can use at your house.) My units have all at least doubled or more in price over the past few years. I would stay with 4 units or less for easy conforming financing. With 5 units and up you are stuck with commercial rates and terms. If you can handle doing a "fixer-upper" you can make even more $$$.
Buy units out at Havasu, Parker or BHC and maybe write off all your river trips as maintenance expenses....
That said, a cautionary note: As interest rates begin to rise, the real estate values may not increase as much as they have over the past few years. A lot of investors who were unable to get a positive return in stocks or bonds made the switch to real estate. I think the biggest gains have been made. At least around here, for the next few years. The returns will likely decrease and many investors may return to the stock market. Which could push it up again. As the economy recovers more investors will return to stocks. People have short memories and when they hear about their friends doubling their money on Qualcomm again, the temptation to join in may be too great.
I see my ML stock fund has finally reached a new high after lagging for the past few years. The recession is over and businesses are expected to start posting positive gains again.
Maybe splitting the money between the two might be wise. I don't see how you can go wrong with either at this point.
Congrats and good luck.
First, do you own a home? If you do, then I would suggest some diversified no load mutual funds. If you don't own a home, then you should put the money down on one. Make contrbutions to a ROTH IRA and if available, maximize a 401k. Whatever you do, con't buy a boat!![]()
Land.......buy some land in Sedona, AZ. Stock market, very risky if you're a day trader IMO, long term with the right portfolio may do the trick.![]()
Good luck to ya Doug, and oh yeah....I'd like just a small chunk of that 70-80K!!!!
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Originally posted by Mandelon
$80K should get you into a $300,000 set of units. Buy something cheaper and you could easily have positive cash flow on them. They depreciate on your taxes, but appreciate in real dollars. You can write off the repairs and expenses. (Which allows for a bit of fudge factor in case you buy too much tile that you can use at your house.) My units have all at least doubled or more in price over the past few years. I would stay with 4 units or less for easy conforming financing. With 5 units and up you are stuck with commercial rates and terms. If you can handle doing a "fixer-upper" you can make even more $$$.
Buy units out at Havasu, Parker or BHC and maybe write off all your river trips as maintenance expenses....
That said, a cautionary note: As interest rates begin to rise, the real estate values may not increase as much as they have over the past few years. A lot of investors who were unable to get a positive return in stocks or bonds made the switch to real estate. I think the biggest gains have been made. At least around here, for the next few years. The returns will likely decrease and many investors may return to the stock market. Which could push it up again. As the economy recovers more investors will return to stocks. People have short memories and when they hear about their friends doubling their money on Qualcomm again, the temptation to join in may be too great.
I see my ML stock fund has finally reached a new high after lagging for the past few years. The recession is over and businesses are expected to start posting positive gains again.
Maybe splitting the money between the two might be wise. I don't see how you can go wrong with either at this point.
Congrats and good luck.
As a person who makes a living in commercial real estate, I can say that is great advice from Mandelon. The only thing I would add to it is.........how long to you plan on investing? If you are in it for the long haul 20 years or better, the stock market isn't a bad option. But don't go into it thinking you are going to make a quick buck and get out. Also, if you decide to get into real estate, do your home work. The last thing you want is a 4-flat that has one unit rented.
Good Luck.