Hey /biz/
I came into some money, $500k to be precise. I need some advice on whether I should invest it in stocks or purchase a home. The average price of a house in my city is around $450k. If I did purchase a house I would basically be left with no cash when you take out stamp duty.
What should I do?
>>1010399
Dont buy the house outright.
>>1010399
Move to where the houses aren't insanely expensive! Then get a $100k house in cash and put the rest into a portfolio of rental properties. Stocks and real estate sales go up and down, but you can always get tenants if you price the rent right.
Note: Make the rent just a bit on the higher side so you don't draw as many druggies and deadbeats.
Depends on you. Personal homes usually net 3% or less during the living cycle, and huge transfer and transaction costs.
Stocks and Rentals you should be aiming for 12% a year. Very difficult right now.
You're completely discounting business. With a warchest like that. You've got access to roughly 2.5 Million in Small business Association funding, for existing businesses.
a business like that should throw off 30k per month with a few 100k months.
>>1010707
>a business like that should throw off 30k per month with a few 100k months.
How do you figure that? I mean, it just seems like a pretty wild assumption to say that with $500,000 in startup money that "a business" is going to net you any specific figure.
What kind of business are you talking about?
>>1010720
Disregard him.
He is Chinese and gives idiotic advice.
>>1010399
put 30% in stocks
65% in REITs
5% in bonds
>>1010720
I think he means that you could purchase an existing business with that money, and that business could draw returns that amount to that much.
I'd just buy properties in Detroit like 100k$ worth. Shit is cheap as fuck and its next Brooklyn.
500k is well over a million in real estate leverage. Get loans paying as less as possible and let poors pay it off while also profiting
>>1010399
OP, execute the following actions:
>Put $10,000 downpayment on a very cheap duplex as part of a mortgage.
>Go to a bank and get a loan equal to the value of the duplex with the mortgage as collateral.
>Take all of this money plus your remaining money and short WTI light sweet crude petroleum.
>Close the short contracts after the price of said oil futures drops by about 10%+.
>You now have one million dollars.
>Pay off the mortgage.
>Continue to do crafty things with your money until you're a multibillionaire.
mfw I'd do all this if I had even a tenth of what op has.
>>1010907
>Put $10,000 downpayment on a very cheap duplex as part of a mortgage.
>Go to a bank and get a loan equal to the value of the duplex with the mortgage as collateral.
How is a mortgage collateral? It's like saying "use your credit card debt as collateral to pay off your credit card". I've never heard of this.
invest in steam games. shit is the future of money
>>1010399
Subtract your age to 100. That's how much % you are investing in stocks. 5% into cash and the rest in bonds.
Interest baring savings account?
40% in an IRA
25% in an S&P tracker fund
25% in an REIT
10% in savings
Get a fuckin job and don't touch the money in savings unless you need to
>>1011019
Oh shut the fuck up, you know literally nothing about this.
A 30 year old should be putting 25% of his money into fucking BONDS? Are you fucking retarded?
>>1010399
Live somewhere cheaper you idiot.
>>1010399
100% bitcoin now
>>1011245
You're obviously not familiar with the Australian housing market. I can buy a house for $300k, but that means living in area full junkies, drunks and busted up sluts.
>>1011249
Idiot
>>1010724
>65% in REITs
>30% in stocks
65% in reits... lmao
>>1010907
>short WTI
oil is going to go UP dumbfuck
this is the time to buy oil futures and hold until oil gets to at least 70$ a barrel
>>1011296
Oil ain't going up for at least 5 years
Also $70/barrel may never happen again since Russia has said they're planning to force $40/barrel as long as they can produce
>>1011250
In that case it sounds like there is a HUGE housing bubble (aka U.S. pre-2008) but who knows, you're the one that's familiar with the Australian housing market so you should know if that's the case. So assuming that's the case, buying a fucking house is literally the worst possible financial decision you could possibly make. So find a mid range place to rent and invest like 80-90% of your cash now for the long term.
Get the fuck out of the USA and retire in Brazil, use $100K to buy a nice house in the South, save $50K for the year and invest everythng else in PETR4.
>>1010399
150-200k In house. Rent a room or 2 to make them pay the interest on the mortgage.
100k into a net egg savings account
Buy a good used car for like 10k
Invest the rest. Since you wont have to pay for rent or car payments you will be able to very easily have a positive cash flow.
Congratulations you won life. Have 5 white children
>>1010399
Here's a tip:
Shove. It. Up. Your. Ugly. Ass.
Buy lots of cat litter, then sell it for 2% more than what you bought it for.
>>1010907
>Taking specific stock advice from anyone, never mind a stranger on the internet
>>1010405
You always get dividends from stocks too if you pick the right ones and it's much less of a hassle to manage a stock portfolio than rental properties.
>>1010399
>stamp duty.
What the fuck kind of foreign shit is stamp duty?
>>1011293
Why not?
>>1010399
overfunded life insurance
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