Is it better to invest $50,000 into a CD or buy property?

Question

I have some money to invest and I can't decide if I should put it into a CD or buy rental property.... Any suggestions?

Answer 1

depenting on the property and location. the CD is safe but if you bought land here in Montana it is growing at a rate of almost 20% per year. that is better than the most risky of stock investments and a lot more solid. plus you can even borrow against it later.

Answer 2

Renting to people is always a nightmare. They love to destory other peoples stuff, and there is a significant investment to continually fix what they destroy.

However, property appreciates at a fast rate than a CD. Interest rates are shaky at best in todays market. You might be better off thinking about buying a run down property fixing it up and then reselling to get a maximum return on your investment.

Or do both, put some into property and some into a cd. Cover your booty.

Answer 3

depending of where you are, and how the property are performing in your area. In general, property would increase 5 to 10 % a year. If you are taking a loan to finance your rental property, the rental can pay for the interest, in many circumstances, you may also earn some money on top of wat u have paid for the interest.
if u are taking a 90%loan, meaning your property is 500k, in a yr time, you will make 25k or 50k depending if your property has appreciated to 5 or 10%. In other words, it is 50% or 100% of your investment of 50k.
I have personally lost 200k in property due to downturn of economy.
There are also concern now that properties in USA is overheated.
Do it with your instincts and monitor it yourself, good luck

Answer 4

Too serious an amount to just piddle around with. Research these index funds - less volatile, mostly diversified... EWZ, EEM, IWD...
I'd go equal amounts into each (33%) with a Scottrade acct, and put a "rising" 7% stop-loss. A rising stop loss will travel upwards as it climbs. Try not to trade anything for under a year though... tax reasons.
jmo

Answer 5

Well, don't take out word for it, you need a specialist in your area. But the housing market is plateauing for a while, you'll most likely be better off with a CD, at least in the short term.

Answer 6

I think firstly you need to know your risk tolerance level in order to decide what type of investment should you go into. Otherwise you still cannot decide where to invest. Maybe talk to a financial planner or investment advisor in your area for advice.

Answer 7

Property is always the key, they stopped making it you know, but renting is tough! Do you maximize your rent income with a nice place with nice stuff, or do you cya with easily replacable stuff if you take a hit in the end.

Answer 8

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Answer 9

Well that depends where the property is. What is the market there?

Answer 10

depends... are you looking for a short term investment that can become liquid again.. or are you looking for a long term investment that will tie up your capital and an equity.. .