I have a good car and my house is paid for. IS 10 grand enough to invest it in anything worth while?
2007-01-24 15:45:46 · 7 answers · asked by roachetter2006 1 in Business & Finance ➔ Renting & Real Estate
Open a mutual fund, preferrably a ROTH IRA unless you have already maxed your $4000 annual contribution limit.
I would recommend researching the Fairholme Fund, ticker FAIRX.
Good Luck!
2007-01-24 16:02:07 · answer #1 · answered by hartless63 4 · 0⤊ 0⤋
yes, this is an unusual area to list this question since your house is already paid for. if you are thinking about investment real estate, 10 grand is only equivalent to 10% of 100 grand. so how far would that go? then you have closing costs.
what about using that money as well as funds from a home improvement mortgage to make sensible improvements to your house? we are in really a long buyer's market (in that respect, if you had more money, you'd be in good space to buy investment property), so then, if your house is in a good location, why not do something like add a bathroom (best with tub, shower, sink and toilet), or make 2 small bedrooms into one large one (if you have a 4 bedroom house), so long as you don't go through a load bearing wall, but only a partition wall? how about giving yourself a new kitchen? these improvements always raise the value of a house as well as make it more saleable in the future.
i am figuring that all structural elements are in top shape, such as roof, water heater, furnace and duct work (if any), water pressure, foundation (!!!), etc. if not, fix them.
else, if you truly want to invest in real estate, i think you will need more money. in that case, you can talk to a banker about drawing from your equity, if that feels good to you. it depends on your age and the security level that feels right.
as for me, the one thing i love to buy is vacant land. yes, i know: then i am paying real estate taxes and not getting anything in return, yes? yes. but in the right location, it is not such a bad idea... only 3 words are important in real estate buying and selling: location, location, location.
good luck!
2007-01-25 00:47:43 · answer #2 · answered by Louiegirl_Chicago 5 · 0⤊ 0⤋
Open up a Money Market mutual fund (no load) and get 5.00% interest while you study better how to invest that $10,000. The only thing you will get is the 5% and no cost to do this while you make a wise choice. Take your time even if it takes a year.
2007-01-25 00:38:28 · answer #3 · answered by Brick 5 · 0⤊ 0⤋
Sure. I would suggest some mutual funds. Which ones your choose depends on your risk tolerance, other investments and time horizon.
For the short term there are some good savings accounts such as hsbcdirect or ING.
2007-01-25 00:02:56 · answer #4 · answered by Gatsby216 7 · 0⤊ 0⤋
Since you put this question in the real estate section, I'm guessing you are entertaining the idea of investing in real estate. If so, read much about the topic for yourself. But in your case as you described think multi-unit rental property. Buy and hold it strategy.
2007-01-25 00:17:14 · answer #5 · answered by LadyB!™ 4 · 0⤊ 0⤋
you can buy a house in Buffalo, NY for less than that and return your investment within 3=4 years.
2007-01-25 10:37:14 · answer #6 · answered by BigDog 1 · 0⤊ 0⤋
Place $4,000 in a ROTH IRA
Take the other $6,000 and place in a high interest online bank, like ING or Emmigrants!
Do not buy a car (depreciates) in value
2007-01-25 01:55:18 · answer #7 · answered by traderb550 3 · 0⤊ 0⤋