I've come to a point where I have a significant amount of money saved and I'm not sure what to do with it. I was considering buying a condo but the more research I do and the more I plug numbers into BUY VS. RENT calculators, the more it sounds like a bad idea. What should I do with my money? Here is my info - 802 credit score - at my same job for 4.5 years (fortune 500 company) - have $105,000... [more]
I've come to a point where I have a significant amount of money saved and I'm not sure what to do with it. I was considering buying a condo but the more research I do and the more I plug numbers into BUY VS. RENT calculators, the more it sounds like a bad idea. What should I do with my money?
Here is my info
- 802 credit score
- at my same job for 4.5 years (fortune 500 company)
- have $105,000 saved
- I'm 29, no kids, not married
- My current rent is $850 (I live with roommates)
- I've been pre-approved for a mortgage at 4%
There's two options I've been considering
1. Continue to keep my money in a Chase Core Bond Fund (it's earning around 4k a year)
2. Buy a condo in the 300k-400k range and rent out as an investment, example: http://streeteasy.com/nyc/sale/585497-condo-27-quincy-st-clinton-hill-brooklyn
3. Buy a condo 300k-400k range to live in
4. ?
Any help would be really appreciated!
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Response by jonronson
almost 14 years ago
Posts: 8
Member since: Feb 2012
Can anyone help with this? I'm sure most people have faced this question at some point?
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Response by narvalisk
over 13 years ago
Posts: 0
Member since: Jul 2012
Diversify your money. Property is a great way to invest but do your research. Obviously it's not guaranteed to rise although historically it's done quite well. I think you would need to commit yourself to holding the property for at least ten years to have it worth your money. Buying and selling is costly and the market usually falls and rises once in this time frame. Tenants can be a cause of stress and on going problems but a property manager can help you with this if you want to buck up. Like I said just try and diversify your money. Contribute to mutual funds, RRSP etc. I like things like minerals and property because if the world goes belly up those two will be in high demand. Good luck.
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Response by narvalisk
over 13 years ago
Posts: 0
Member since: Jul 2012
I'd like to see you getting a higher rate of return on your 100,000. I'd consider finding something cheaper in the real estate market if at all possible so your down payment is more substantial making your rental income higher and more money being payed down on the principle.
Can anyone help with this? I'm sure most people have faced this question at some point?
Diversify your money. Property is a great way to invest but do your research. Obviously it's not guaranteed to rise although historically it's done quite well. I think you would need to commit yourself to holding the property for at least ten years to have it worth your money. Buying and selling is costly and the market usually falls and rises once in this time frame. Tenants can be a cause of stress and on going problems but a property manager can help you with this if you want to buck up. Like I said just try and diversify your money. Contribute to mutual funds, RRSP etc. I like things like minerals and property because if the world goes belly up those two will be in high demand. Good luck.
I'd like to see you getting a higher rate of return on your 100,000. I'd consider finding something cheaper in the real estate market if at all possible so your down payment is more substantial making your rental income higher and more money being payed down on the principle.