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Started By
Message
better investment, real estate or mutual funds?
Posted on 5/3/12 at 11:22 am
Posted on 5/3/12 at 11:22 am
ive recently recieved an inheritance of about 300k and am looking to invest it. ive heard compelling arguments both ways, and was initially planning on purchasing property to rent out. My fiance's family owns rental property and has constant trouble with delinquent tenants, and that turns me off. On a positive, i know this is the absolute best time to buy real estate, and real estate is always a solid investment. Also, having monthly rental cash coming in is a huge attraction for me.
my family's traditional way of investing has been mutual funds and municipal bond funds. A good majority of the inheritance is currently in bond funds that have performed very well over the last few months. fund investments also would require alot less work on my part than real estate, i wouldnt have to worry about problems with tenants and such.
im 30 years old and will soon be married, i obviously want to save up for retirement, but i would also like to be able to enjoy some of the money around the time i hit 40. I live in los angeles and would be interested in purchasing property in las vegas. At this point, i am leaning towards keeping the money in the stock market, and diversifying it with some conservative and aggressive funds.
Id like to hear some compelling arguments either way, or personal stories/experiences anybody has. or if there are any other ideas feel free to chime in.
and before anybody asks, yes i have consulted a financial planner.
my family's traditional way of investing has been mutual funds and municipal bond funds. A good majority of the inheritance is currently in bond funds that have performed very well over the last few months. fund investments also would require alot less work on my part than real estate, i wouldnt have to worry about problems with tenants and such.
im 30 years old and will soon be married, i obviously want to save up for retirement, but i would also like to be able to enjoy some of the money around the time i hit 40. I live in los angeles and would be interested in purchasing property in las vegas. At this point, i am leaning towards keeping the money in the stock market, and diversifying it with some conservative and aggressive funds.
Id like to hear some compelling arguments either way, or personal stories/experiences anybody has. or if there are any other ideas feel free to chime in.
and before anybody asks, yes i have consulted a financial planner.
5
Posted on 5/3/12 at 11:48 am to 632627
quote:
i know this is the absolute best time to buy real estate, and real estate is always a solid investment.
I found this sentence to be rather peculiar in its entirety.
Posted on 5/3/12 at 11:51 am to 632627
quote:
and real estate is always a solid investment.
Insurance cost
Property taxes
Maintenance cost
Finding good tenants
Getting tenants to pay
Small claims court
the toilet is broken
a tornado just tore the roof off
the day i sell my rental house is the day I do coke for the first time.
This post was edited on 5/3/12 at 11:53 am
Posted on 5/3/12 at 11:55 am to 632627
200k to "broad" stock market
50k to bond market
49k to home equity
1k to beer market
50k to bond market
49k to home equity
1k to beer market
Posted on 5/3/12 at 11:59 am to notiger1997
quote:
How about a REIT?
lets not do that one.
Posted on 5/3/12 at 12:00 pm to notiger1997
Non agency REITs, FTW.
Posted on 5/3/12 at 12:13 pm to Chad504boy
quote:
the day i sell my rental house is the day I do coke for the first time.
Posted on 5/3/12 at 1:11 pm to 632627
quote:
On a positive, i know this is the absolute best time to buy real estate, and real estate is always a solid investment. Also, having monthly rental cash coming in is a huge attraction for me.
How about monthly rental expenditures and long term maintenance? Is it hugely attractive to have your monthly cash flow cut off due to a shitty tenant or vacancy? Real estate can certainly be a poor investment if it's not going to net you the same kind of return as your other options.
I've read that the most reliable strategy for growing a lump-sum investment (or the model for more consistent growth) is to allocate a certain percentage to each investment class (stocks foreign and domestic, government/corporate bonds, cash, real estate partnerships) and rebalance annually. I'm sure most people on this board are way more knowledgeable about all of this, but that's my general plan if I find myself in a similar situation (and I would plan on seeking out a reputable, like-minded adviser to handle all of that).
Posted on 5/3/12 at 1:33 pm to Dead Mike
thanks for some of the answers. it seems that my primary concern with real estate is valid.
Posted on 5/3/12 at 3:37 pm to 632627
Your young and got plenty of time to be aggressive. 300k I feel could be better put to work in the market than rental property which would tie up a large portion of your assets in one investment. REITs are great for generating income. Interests rates will rise but we've got time before that happens.
I would put that money in diversified stocks, bonds, reits, funds etc.
So let's flip the tables here. There are smart money people on MB, what did your "professional" financial planner recommend and let us judge.
I would put that money in diversified stocks, bonds, reits, funds etc.
So let's flip the tables here. There are smart money people on MB, what did your "professional" financial planner recommend and let us judge.
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