What’s a better investment, mutual funds or becoming a landlord?
I’m 31 years old and I want to be secure financially when I retire. Can I make more money after 30 years by buying a house and renting it (planning on buying a $300,000 home and having renter pay half of a $2000 mortgage) or investing my money in mutual funds. I’m a teacher, so I have 403 b tax shelter annuity available to me.
Related posts:
- Investment Basics : How Do Mutual Funds Work? Mutual funds are a type of investing in which an individual can deposit money into a fund and receive a share in the value of that mutual fund. Find...
- What mutual funds are considered a good investment? I keep hearing that one should invest in mutual funds that are a combination of around 60% stocks and 40% mutual funds. Can someone knowledgeable in mutual funds recommend a...
- Capital Gains from Mutual Funds – Can I apply them to a new home? I am purchasing my first home and need to sell several of my mutual funds for the down payment. Unfortunately, I am going to take a big hit when I...
- Help determining the right mutual funds and risk for my situation? I am planning to begin investing in mutual funds. Most likely I will open a Roth IRA and invest to the max annually. Then just invest in funds themselves. I’m...
- Mutual funds? I have a small amount of money I would like to invest. I have heard of mutual funds but what are they? how do you get them? how much do...
- What is the best mutual funds for maximum growth and little risk? My Mother-In-Law is behind on retirement savings and I want to help her invest in something that will make her some money in 5-8 years. Just looking for some names...
admin @ May 16, 2010
which will be less of a headache…mutual funds making you money …or a renter possibly damaging your home and the many repairs you will be liable for…not to mention you might be sued for anything concerning the home
Become a land lord is more comfortable than investing in mutual fund.
land gives u only capital appreciation and in time of need for cash it will be difficult. mutual fund gives dividends, appreciation and also has easy liquidity in case of need. also u need sell only as much as u need and not entire holding. however, it is ok to purchase suitable house for residence.
considering your age…i feel investing in Mutual funds is far better than investing in a property..as i feel..it requires a lot of initial investment…..which Mutual funds dont.
and there are many advantages with mutual funds…say it in terms of liquidity, income , profit or capital appreciation…
the best part is u have soo many options available to invest in them..and more over u get the tax benefits also…
u can actually plan out..at what intervals u need the money and according to that u can plan your investment into mutual funs( i mean the option like growth or dividend)
if u can tell , how much money u wanna invest now..and what kind of return that u r expecting outta your investment and how long u wanna invest , when u want u r money or the returns..i can help u out planning your investment..
any ways i suggest u to invest in mutual funds than to invest in property at this point of time considering your inputs.
i wish u good luck in that…
Happy investing
mutual funds. if you bought a $300,000 house at 5% for 30 years it will cost you :
I=PxRxT
I = $300,000 x 5% x 30 years
I= $450,000
450,000 + 300,000 = $750,000
so the house will cost you $750,000 not including maintence and up keep. if you rent it out you have too pay taxes on the money you getting from the rent. i would stick with the mutual funds for the long hual.