I will have about 10k to invest with, and want to look for a house within the next 3-5 years. What should I do with this money to achieve this goal? After another year or so, I will have another 10k to add on. Any ideas? Nothing too risky, as I would like to keep the principle amount still...
2007-06-10 16:13:09 · 9 answers · asked by The Man 2 in Business & Finance ➔ Investing
Real estate is certainly an option, as is investing in stocks.
But first, you need to get some education. Learning some of what you don't know will save (make) you so much more money in the long run rather than following the masses and taking slow or eratic routes.
For stocks, perhaps start with How to make money in stocks in good times and bad by O'Neill.
For real estate, there's free seminars going on all the time. In fact, there's a Real Estate expo that can at least give you a sense of some of the many types of ways you might consider to make money in real estate.
Hope that helps!
2007-06-14 16:17:38 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
I would buy the house now and rent it out. Risky, yes, but everything has some risk. The rent would cover the extra tax, but you would be stuck with a monthly mortage.
I would not invest in a locked reinvesting GIC or CD. You pay tax on the income you make from these, and you don't have access to the money. In other words, at 5 percent you would have to pay tax on 500 dollars that you don't have access to. You would lose money in the short term.
What i do is put my money into index funds. You could afford 300$/month and it's very easy to do. Pick one third US stock, one third Canadian stocks, and one third bonds. Adjust as needed to keep them all at 1/3rd (some places will do this for you) and add as you see fit.
2007-06-11 18:20:28 · answer #2 · answered by Ninja grape juice 4 · 0⤊ 0⤋
invest in CDs. Find one that earns more than 5% and keep cycling it back in with the interest it earns until you need the money. I am doing this now to pay my house off as there is no risk (technically) and only reward. Any actual investment in the stock market is way too risky for short term and even gold is too risky and with that there will be fees. Incidentally, if you get a CD at your local bank, absolutely no fees.
(mine is @ 5.35%)
2007-06-10 23:19:27 · answer #3 · answered by rich e rich 4 · 0⤊ 0⤋
Today is a best time to buy a house, because the market for buyers. You can get the house $30k - 40k cheaper, next year will be different market and you can loss this aportunity. So, do not save for 3-5 years, today is a best time.
2007-06-10 23:22:19 · answer #4 · answered by reality 6 · 0⤊ 0⤋
As you want to sleep better at night (preserve the principal), I think the best way is to invest in either Money Market mutual funds or open a CD account in the bank. (Interest rate right now is about 4.75% - 5.25%) Many on-line banks do offer higher interest rate than the traditional banks. However, you want to make sure that your deposit is FDIC insured.
2007-06-11 02:36:18 · answer #5 · answered by Bryan 5 · 0⤊ 0⤋
Read "Rule Number 1" by Phil Town. If you follow all the steps carefully, you should do very well and have a bigger down payment when you're ready to buy a house.
Six months before you're ready to buy a house, read "Building Wealth one House at a Time" by John Schaub and similar books. Check them out at the library; don't buy them. Also read "Rational Simplicity" by Tim Covell. I'm sure you will succeed, friend.
2007-06-10 23:21:30 · answer #6 · answered by dicey047 2 · 0⤊ 1⤋
i suggest you invest your money in education, you can do both do courses and buy investing books.
2007-06-11 10:23:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Try putting it in www.emmigrantdirect.com
or try going to www.clarkhoward.com he'll give u really good advice
2007-06-10 23:17:15 · answer #8 · answered by Stanley the Westie 4 · 0⤊ 0⤋
real state bb........long process but u get a lot backk
2007-06-10 23:20:45 · answer #9 · answered by Anonymous · 0⤊ 2⤋