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Real estate makes sense in the current market if it's a primary home, if your credit is decent, you can find a house that you can afford based on a 15 yr term, and you have liquid assets to put down 30%. Real estate is the most common "leveraged" investment. Let's say you get a place at 3.5% rate, the interest impact may be further reduced by a tax benefit, you get to use the asset, while the asset appreciates (or should) over the course of 15 years if you hold full term. And in 15 years, you're 100% equity plus appreciation during that period (which if I assume a 3% annual would be about 60% compounded.) Now, if you already own a home, second home isn't hat good of an option.
I have a friend who lends through LendingCorp (p2p lending) and has made a good but risky return.
Good lord move out of your parents house. Invest in being an adult. Buy a home.
Give me your money
Yeah, my financial planner told me to buy stocks and mutual funds in $5k increments. I played the market well for a few years and my portfolio made 32% per year for three years in a row.
I'd vote stocks and mutual funds, but that is just me.
Net worth doesn't really matter. Cash flow matters. Eventually you'll hit the salary cap and not be able to contribute to a Roth IRA.
To me, real estate is less about the price of the property but more about putting money that you're going to spend regardless into equity in something that you can get a direct benefit from.
Max out your 401k. Pay off all debt including the house.
@EY3 get with the times and encourage smart long term thinking over machismo independence
@PwC2 I think you meant D3, but it seems like D3 meant filling the annual maximum as a means of increasing your net worth
Real estate is good if you have the liquid cash.
Me damn't
Haha I was thinking the same thing
Six figures by 25 is a strong start - if you expect to keep growing it though, I recommend staying at home, especially if you are in NYC. Don't think you have enough money or liquidity for real estate if you are counting your money in a Roth or in an HSA to get to that six figures...
And your 401(k)
Yeah, I think D3 meant the $18k
PwC is correct if you have the liquidity and foresight to do so. In terms of liquidity, an owned property will require significantly more than a rented one. Even if you are able to secure a mortgage that gets you close to your rent, you also have to consider race, maintenance and repair, HOA (if in a regulated community or condo), as well as increased insurance costs. That being said, it is a stronger long term strategy. But, it is also important to consider your foresight. If you cannot rent out your property for more that your total cost of ownership (including all of the above etc.) then to be a worthwhile investment, you had better plan on living there and enjoying it or you're better off passing. Speaking as someone on the younger side, it may not make sense to tie yourself down in a longer term investment. That being said, do the analysis and if it makes sense, go for it.
Save for a downpayment. Save for a wedding.
Real estate is still too volatile if you ask em