First time poster on this board, long time Veeky Forums visitor.
I have a question about smart choices with $225,000 inheritance (after taxes) I received. In addition, I'm getting $1,200 in royalties (after taxes) per month from the payout. Pastly, I work full time and recieve $125,000 in salary per year (before taxes).
I have an outstanding mortgage on my primary residence of $108,000 at fixed 4.7% and an outstanding car loan of $65,000 at 4.5% fixed.
With this new payout and royalties I've recieved, I was thinking about buying an apartment rental property with cash ($225,000) and rent it out for approx. $1,300 per month.
Put it all in ENG, and thank me in a year or two... make sure your private island has decent WiFi for your guests.. nothing worse than staying at a billionaires private island and having to fuck around with shitty internet connections.
Nicholas Cruz
Mate you're asking in the wrong place. People will try to convince you to put it all in some shitcoin.
Joseph Butler
it's not a bad idea but remember that there's also costs to renting a house like dealing with repairs, taxes, insurance, etc. Most of the time it's basically free money but you also have to prepare for those times when the house is empty and parts of it have naturally decayed
Jace Price
cash silver wau cooin. avoid major crypto and icos like leperosy, stocks are leporosy, bonds are jewish aids
Elijah Taylor
Put like $20K at least in NANO and thank me later.
Jaxon Jackson
Also the housing bubble is going to pop again in a year or two if you live in N.A. so don't buy shit till it does. Also, like fuck I'd tell you just put it in index funds for an equal or greater return but the stock market gonna crash too. If I had that money I'd be putting whatever I don't wanna lose in high-yield short-term bonds and the rest in crypto for the potential gains.
David Myers
Get rid of the luxury car. If you’re thinking about real estate imagine what you could do by throwing another 65k at it (since you can afford the leverage as is). Your 225k/1300 goes to 290k/1600 while you gain more of an appreciating asset (real estate) and lose the depreciating one (luxury car).
Of course you’re probably ego invested in the brand so you may find this difficult.
Bentley Gray
put that shit in a low risk fund and wait till the houseprices normalise a bit. not a good time to buy rn
Adrian Watson
I agree that housing is pricey right now. the last BIG correction was due to loans given out to people who couldn't afford. Is it fair to say the restrictions on loans put in place prevent the same thing from happening this go around? If so, is a correction certain?
Can prices become so high that people just can't afford homes thus spurring anemic growth where a correction is forced?
I guess I'm trying to understand how a correction will happen.
Justin Turner
Yes, obviously. Not to mention interest rates will rise, people who bought more than they can afford can't pay their mortgages, and suddenly their houses become less than what they bought them for.
Caleb Wilson
I hear what you're saying about the car. Maximize investment, minimize expenditures.
Caleb Gomez
Won't you over the same amount of time always get better returns in the market? That's what I keep reading And a 65k car loan? Christ all mighty
Luke Ward
According to the link below, fixed rate mortgages account for 90% of the market so I'm not seeing how rising interest rates will sink the housing market.
However, 10% are not fixed. Although a tenth isn't a lot, is that enough to push the market into correction territory when interest rates rise?
People with fixed-rate mortgages can still fuck up and not be able to pay their mortgages. Both are still affected by houses becoming devalued. 10% might not be enough to push down the whole market, although the market is trillions of dollars so 10% is quite a lot. Not sure man. Also I wouldn't believe shit from Freddie Mac.
Easton Green
Oh and sorry, with a mortgage you have to refinance your loan every 5 years usually. So when interest rates rise, variable and fixed loan rates rise assuming you are up for refinancing.
Evan Adams
I guess it depends on how bad a housing correction is. Historically, housing has tracked pretty well to inflation. If you're gaining rental income on top of that, maybe it's a wash compared to equities?
I think I do pretty well OP. I have experience with having money losing everything then rebuilding from the bottom of the barrel and coming back even better off than before.
payoff your house first: if shit hits the fan you lose your job and or investments or whatever you still have a house and place to live....
downgrade your car to a reliable gas saver....the corolla is excellent in this regard
after all that see how much you have left and determine if a rental property is a good idea
the problem with making a recommendation on purchasing a rental property is that it is dependent on you particular city so there is absolutely no way anyone here could give you a good answer but i can give you some things to consider when deciding on a rental property
local job market: is it strong? is job growth predicted? population: is it increasing or decreasing rental vacancies: high or low types of renters you will get poor or middle class or high end management of the property ( collecting rent, leaks, damage, plumbing, landscaping, upkeep) property taxes and income from property taxes
Isaiah Myers
You can use those 200k to leverage 4 apartments instead of 1. Get 4k/m instead of 1k Comes with the risk of market crash and extra interest on mortages, but with 100k income, I'd go with it.
Gabriel Lee
And don't forget to alocate 20k to crypto like user said. Rules of Veeky Forums
Jack Cooper
>Is this a good idea? I own 4 properties now.
I'm not saying this is a good / bad idea. But leave the money in a bank account for 6 months while you choose what to do.
At the end of that time, if you still want to buy a rental then do it.
