U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-28-2007, 09:58 AM
 
4,963 posts, read 3,933,366 times
Reputation: 2917

Advertisements

Hi there
We are in our early 40's with two children under 10. While we are ok with real estate, we have three houses ; two are investments (one is paid off) and we live in a third. I would love to buy another house as an investment. We are figuring that the real estate should be a good investment for college and/or retirement.

Our retirement account is only about $20,000. We also own a business with no debt.

I guess I am at a crossroads ; do we put money into 401k's etc, or go the 90% real estate route.

Any opinions and/or advice. We do have some mortgages, rent is covering that and we have no credit card debt.

Thanks
Reply With Quote Quick reply to this message

 
Old 06-28-2007, 11:35 AM
 
186 posts, read 273,169 times
Reputation: 123
It depends on your tolerance for tenants and the current real estate market where you are living. I would personally do both--put in 401k and at the same time save to invest in real estate but only in a stable market. If the real estate market is in decline don't invest in real estate but wait until markets hit bottom--then buy. If you want your real estate gains to continue to grow make sure to take advantage of 1031 exchanges.
Reply With Quote Quick reply to this message
 
Old 06-28-2007, 12:08 PM
 
Location: WA
5,293 posts, read 20,722,661 times
Reputation: 5626
I have found that investing, regardless of the vehicle, is some amount of work. If you work as a landlord there is work managing the property and the associated finances. If you invest in markets though a 401/IRA there is some work in choosing the investments and adjusting as needed.

Having tried both I find it is clearly easier for me to invest in the markets rather than work with real property. I know the results will vary widely, but I think I have had slightly better returns in the market as well.

This is a very personal decision, but given the ability to diversify in markets and value of your time, I would suggest putting more resources into retirement accounts.
Reply With Quote Quick reply to this message
 
Old 06-29-2007, 04:45 PM
 
186 posts, read 273,169 times
Reputation: 123
On second thought my advice is to just give me the money!!!
Reply With Quote Quick reply to this message
 
Old 07-03-2007, 02:10 PM
 
Location: Weston, FL and Vero Beach, Fl
2,945 posts, read 11,944,289 times
Reputation: 2057
I would be inclined to invest unless I find that perfect property where I know it will appreciate a given % in a given number of years. Much of this depends on your liquidity and a number of factors. Actually no one here can really answer your question without knowing your specifc tax situation; therefore I would recommend you speak with your accountant.
Reply With Quote Quick reply to this message
 
Old 07-08-2007, 04:03 PM
 
22 posts, read 73,118 times
Reputation: 16
Okaydorothy, I hope you are still on here to get this. It sounds like you have adequate passive income but you are not using your assets to create wealth. I would suggest you get training with Loral Langemeirer. She has 2 books on NY Best Seller's list. I think you will see this as valuable information.
I'd like to hear from you.
Reply With Quote Quick reply to this message
 
Old 07-11-2007, 05:42 AM
 
4,963 posts, read 3,933,366 times
Reputation: 2917
what are the books called?

Thanks
dorothy
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top