Home › Forums › Financial Markets/Economics › What is a better investment? Buy a house or buy mutual funds/stocks, etc?
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lepetitangel.
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March 10, 2011 at 9:09 AM #676706March 10, 2011 at 9:15 AM #675566
XBoxBoy
ParticipantI’m going to agree with Flu. If you are thinking of using the money to buy a house, do NOT put it in the stock market. There is just too much risk in that way.
Instead I would put it in FDIC insured accounts. You won’t get squat interest, but you won’t loose your principle.
If I were you, I’d take the attitude that you are in the driver’s seat. You put your money in FDIC insured accounts, start looking in carmel valley and pay close attention to what is going on. In my opinion, the carmel valley market is unlikely to change wildly one way or the other in the next couple of years. My guess would be a slow decline, but only a couple percent per year. Since you are looking to buy a place to live in for a number of years, then you should take your time, look at lots of houses, and only buy the one you really like. You might find that soon, or it might be a year or two before you find the one you like at the price you can afford. But if you have good credit, and some cash for a down payment, you are in the driver’s seat. Don’t let someone push you into doing anything sudden and definitely don’t put you money in anything that is not a guaranteed safe bet.
Just my take.
XBoxBoy
March 10, 2011 at 9:15 AM #675621ParticipantI’m going to agree with Flu. If you are thinking of using the money to buy a house, do NOT put it in the stock market. There is just too much risk in that way.
Instead I would put it in FDIC insured accounts. You won’t get squat interest, but you won’t loose your principle.
If I were you, I’d take the attitude that you are in the driver’s seat. You put your money in FDIC insured accounts, start looking in carmel valley and pay close attention to what is going on. In my opinion, the carmel valley market is unlikely to change wildly one way or the other in the next couple of years. My guess would be a slow decline, but only a couple percent per year. Since you are looking to buy a place to live in for a number of years, then you should take your time, look at lots of houses, and only buy the one you really like. You might find that soon, or it might be a year or two before you find the one you like at the price you can afford. But if you have good credit, and some cash for a down payment, you are in the driver’s seat. Don’t let someone push you into doing anything sudden and definitely don’t put you money in anything that is not a guaranteed safe bet.
Just my take.
XBoxBoy
March 10, 2011 at 9:15 AM #676233ParticipantI’m going to agree with Flu. If you are thinking of using the money to buy a house, do NOT put it in the stock market. There is just too much risk in that way.
Instead I would put it in FDIC insured accounts. You won’t get squat interest, but you won’t loose your principle.
If I were you, I’d take the attitude that you are in the driver’s seat. You put your money in FDIC insured accounts, start looking in carmel valley and pay close attention to what is going on. In my opinion, the carmel valley market is unlikely to change wildly one way or the other in the next couple of years. My guess would be a slow decline, but only a couple percent per year. Since you are looking to buy a place to live in for a number of years, then you should take your time, look at lots of houses, and only buy the one you really like. You might find that soon, or it might be a year or two before you find the one you like at the price you can afford. But if you have good credit, and some cash for a down payment, you are in the driver’s seat. Don’t let someone push you into doing anything sudden and definitely don’t put you money in anything that is not a guaranteed safe bet.
Just my take.
XBoxBoy
March 10, 2011 at 9:15 AM #676372ParticipantI’m going to agree with Flu. If you are thinking of using the money to buy a house, do NOT put it in the stock market. There is just too much risk in that way.
Instead I would put it in FDIC insured accounts. You won’t get squat interest, but you won’t loose your principle.
If I were you, I’d take the attitude that you are in the driver’s seat. You put your money in FDIC insured accounts, start looking in carmel valley and pay close attention to what is going on. In my opinion, the carmel valley market is unlikely to change wildly one way or the other in the next couple of years. My guess would be a slow decline, but only a couple percent per year. Since you are looking to buy a place to live in for a number of years, then you should take your time, look at lots of houses, and only buy the one you really like. You might find that soon, or it might be a year or two before you find the one you like at the price you can afford. But if you have good credit, and some cash for a down payment, you are in the driver’s seat. Don’t let someone push you into doing anything sudden and definitely don’t put you money in anything that is not a guaranteed safe bet.
Just my take.
XBoxBoy
March 10, 2011 at 9:15 AM #676716ParticipantI’m going to agree with Flu. If you are thinking of using the money to buy a house, do NOT put it in the stock market. There is just too much risk in that way.
Instead I would put it in FDIC insured accounts. You won’t get squat interest, but you won’t loose your principle.
If I were you, I’d take the attitude that you are in the driver’s seat. You put your money in FDIC insured accounts, start looking in carmel valley and pay close attention to what is going on. In my opinion, the carmel valley market is unlikely to change wildly one way or the other in the next couple of years. My guess would be a slow decline, but only a couple percent per year. Since you are looking to buy a place to live in for a number of years, then you should take your time, look at lots of houses, and only buy the one you really like. You might find that soon, or it might be a year or two before you find the one you like at the price you can afford. But if you have good credit, and some cash for a down payment, you are in the driver’s seat. Don’t let someone push you into doing anything sudden and definitely don’t put you money in anything that is not a guaranteed safe bet.
Just my take.
XBoxBoy
March 10, 2011 at 9:46 AM #675584moneymaker
ParticipantAgree with everybody above. If you’re planning on putting more than 20% down I would wait a little longer. Less than 20% then start looking now and if you can find a house with solar that would be a plus in my opinion. Atleast take into consideration if the roof is south facing and unobstructed.
March 10, 2011 at 9:46 AM #675640ParticipantAgree with everybody above. If you’re planning on putting more than 20% down I would wait a little longer. Less than 20% then start looking now and if you can find a house with solar that would be a plus in my opinion. Atleast take into consideration if the roof is south facing and unobstructed.
March 10, 2011 at 9:46 AM #676252ParticipantAgree with everybody above. If you’re planning on putting more than 20% down I would wait a little longer. Less than 20% then start looking now and if you can find a house with solar that would be a plus in my opinion. Atleast take into consideration if the roof is south facing and unobstructed.
March 10, 2011 at 9:46 AM #676390ParticipantAgree with everybody above. If you’re planning on putting more than 20% down I would wait a little longer. Less than 20% then start looking now and if you can find a house with solar that would be a plus in my opinion. Atleast take into consideration if the roof is south facing and unobstructed.
March 10, 2011 at 9:46 AM #676734ParticipantAgree with everybody above. If you’re planning on putting more than 20% down I would wait a little longer. Less than 20% then start looking now and if you can find a house with solar that would be a plus in my opinion. Atleast take into consideration if the roof is south facing and unobstructed.
March 10, 2011 at 9:50 AM #675579
CoronitaParticipantLep,
My issue with you thinking about the stock market is the “duration” you are proposing. If you’re going to be in it for a few years, perhaps…But it’s not a tricked out/rigged slot machine in which you can say you’ll get your 9-10% return over the next 1-2 years. A lot of it you don’t know when/if things will turn around. Stick it in the highest paying FDIC insured account you can without withdraw penalties.. I wouldn’t even consider putting it into precious metals/commodities/oil gas, since again, seems like you’re dead set on buying over the next 1-2 years.
Put this way…
I hear often times people what to “wait” for home prices to come down and that they will “save” or “invest” their money while waiting….Make sure you can really “save” and that “invest” doesn’t lead to big losses…For example: You might be quibbling over between a home that is priced $850k versus $900k, even though that $50k is spread out over a 30 year or 15 year loan…But then in the meantime, if you decide to put your $180k+ downpayment into the stock market and happen to time it wrong and lose 20% or more (say $36k)…..you have to wonder if you should wonder if you would have been better if you just spent the extra $50k on your home anyway…..Hope you see my point…..
March 10, 2011 at 9:50 AM #675635CoronitaParticipantLep,
My issue with you thinking about the stock market is the “duration” you are proposing. If you’re going to be in it for a few years, perhaps…But it’s not a tricked out/rigged slot machine in which you can say you’ll get your 9-10% return over the next 1-2 years. A lot of it you don’t know when/if things will turn around. Stick it in the highest paying FDIC insured account you can without withdraw penalties.. I wouldn’t even consider putting it into precious metals/commodities/oil gas, since again, seems like you’re dead set on buying over the next 1-2 years.
Put this way…
I hear often times people what to “wait” for home prices to come down and that they will “save” or “invest” their money while waiting….Make sure you can really “save” and that “invest” doesn’t lead to big losses…For example: You might be quibbling over between a home that is priced $850k versus $900k, even though that $50k is spread out over a 30 year or 15 year loan…But then in the meantime, if you decide to put your $180k+ downpayment into the stock market and happen to time it wrong and lose 20% or more (say $36k)…..you have to wonder if you should wonder if you would have been better if you just spent the extra $50k on your home anyway…..Hope you see my point…..
March 10, 2011 at 9:50 AM #676247CoronitaParticipantLep,
My issue with you thinking about the stock market is the “duration” you are proposing. If you’re going to be in it for a few years, perhaps…But it’s not a tricked out/rigged slot machine in which you can say you’ll get your 9-10% return over the next 1-2 years. A lot of it you don’t know when/if things will turn around. Stick it in the highest paying FDIC insured account you can without withdraw penalties.. I wouldn’t even consider putting it into precious metals/commodities/oil gas, since again, seems like you’re dead set on buying over the next 1-2 years.
Put this way…
I hear often times people what to “wait” for home prices to come down and that they will “save” or “invest” their money while waiting….Make sure you can really “save” and that “invest” doesn’t lead to big losses…For example: You might be quibbling over between a home that is priced $850k versus $900k, even though that $50k is spread out over a 30 year or 15 year loan…But then in the meantime, if you decide to put your $180k+ downpayment into the stock market and happen to time it wrong and lose 20% or more (say $36k)…..you have to wonder if you should wonder if you would have been better if you just spent the extra $50k on your home anyway…..Hope you see my point…..
March 10, 2011 at 9:50 AM #676385CoronitaParticipantLep,
My issue with you thinking about the stock market is the “duration” you are proposing. If you’re going to be in it for a few years, perhaps…But it’s not a tricked out/rigged slot machine in which you can say you’ll get your 9-10% return over the next 1-2 years. A lot of it you don’t know when/if things will turn around. Stick it in the highest paying FDIC insured account you can without withdraw penalties.. I wouldn’t even consider putting it into precious metals/commodities/oil gas, since again, seems like you’re dead set on buying over the next 1-2 years.
Put this way…
I hear often times people what to “wait” for home prices to come down and that they will “save” or “invest” their money while waiting….Make sure you can really “save” and that “invest” doesn’t lead to big losses…For example: You might be quibbling over between a home that is priced $850k versus $900k, even though that $50k is spread out over a 30 year or 15 year loan…But then in the meantime, if you decide to put your $180k+ downpayment into the stock market and happen to time it wrong and lose 20% or more (say $36k)…..you have to wonder if you should wonder if you would have been better if you just spent the extra $50k on your home anyway…..Hope you see my point…..
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