What would be the best use of $100,000?
We are considering buying a house and paying cash- owning it outright instead of a mortgage. (House prices in my area are quite low)
This seems like a good idea because we will never have to worry about a mortgage, which is a long commitment.
We no nothing about investing, and we wonder if there is a better way to use the money- perhaps invest it so that it turns us a profit- albeit the profit we made would have to be big enough to offset the mortgage payment we would then be making.
Any advice?
thank you.
2006-12-17 01:09:27 · 6 answers · asked by female_gerbil 2 in Business & Finance ➔ Renting & Real Estate
You have to consider the rest of your financial well-being first. Have you payed off all your non-deductible debt first? (credit card, auto, student loan) Do you have 6 month's emergency cash available, money you don't every plan to touch except in emergency? Then have you contributed the maximum you can each year to 401K or IRA? Finally, are you fully insured?
Once all the rest of your house is in order then you can think about investing beyond. Trouble is you will find a zillion different opinions as the market(s) are constantly changing.
2006-12-17 01:36:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is possible to out-earn a mortgage with an alternative investment but its difficult and you really have to be either lucky or know what you are doing. You are better paying off the house in one go, especially if that is the property you intend to live in.
If you had $100,000 for straight investment, I would scan the stock market and pick a business that is returning an average of five to ten percent per year and invest. Take your dividends in share and thereby compound the interest. Over time your investment would grow nicely.
2006-12-17 01:30:09 · answer #2 · answered by 13caesars 4 · 0⤊ 0⤋
Get a CD with the bank that you choose to do your real estate business with. Then go out amongst the savages and locate the real estate you want acquire the real estate by borrowing the money from the bank using the CD as collateral for either the downpayment or the entire price depending on prices in your area. If an investment then turn the property for a profit and pay off the loan, keep the 100k write off the interest paid on the acquisition loan and pay the long term (15%) capital gain on the profits received and do it again.
Buena Suerte
2006-12-17 03:40:15 · answer #3 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
What type of turn are you looking for? Can you afford to lose and of your money? I suggest that you take a few of those dollars and invest in a course on save investing.
2006-12-17 04:20:21 · answer #4 · answered by deletmor 1 · 0⤊ 0⤋
There is a better way! You can do ALOT with $100k. Start by buying two books:
"Rich Dad, Poor Dad" by Robert Kiyosaki & "Real Estate Riches" by Dolf de Roos.
Think about how much you can turn that $100k into, not how much you can put into one purchase.
Good luck!
2006-12-17 02:39:15 · answer #5 · answered by turbiville 1 · 0⤊ 0⤋
thatz difficult...
you can go into property, stocks or business.. (obviously).
Property is always good but its a gamble with the location.... however london house prices keep climbing so 80% you'll be safe.
Stocks... alot of risk.
business... Open a franchise...
2006-12-18 00:56:33 · answer #6 · answered by Confused&inTrouble 1 · 0⤊ 0⤋
give it 2 me lol
2006-12-17 01:39:55 · answer #7 · answered by Anonymous · 0⤊ 0⤋