What’s a better investment, mutual funds or becoming a landlord?
I’m 31 years old and I want to be secure financially when I retire. Can I make more money after 30 years by buying a house and renting it (planning on buying a 0,000 home and having renter pay half of a 00 mortgage) or investing my money in mutual funds. I’m a teacher, so I have 403 b tax shelter annuity available to me.
Tagged with: buying a house • money • mortgage • mutual funds • renter • tax shelter annuity
Filed under: How to become a Landlord
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considering your age…i feel investing in Mutual funds is far better than investing in a property..as i feel..it requires a lot of initial investment…..which Mutual funds dont.
and there are many advantages with mutual funds…say it in terms of liquidity, income , profit or capital appreciation…
the best part is u have soo many options available to invest in them..and more over u get the tax benefits also…
u can actually plan out..at what intervals u need the money and according to that u can plan your investment into mutual funs( i mean the option like growth or dividend)
if u can tell , how much money u wanna invest now..and what kind of return that u r expecting outta your investment and how long u wanna invest , when u want u r money or the returns..i can help u out planning your investment..
any ways i suggest u to invest in mutual funds than to invest in property at this point of time considering your inputs.
i wish u good luck in that…
Happy investing
which will be less of a headache…mutual funds making you money …or a renter possibly damaging your home and the many repairs you will be liable for…not to mention you might be sued for anything concerning the home
Become a land lord is more comfortable than investing in mutual fund.
land gives u only capital appreciation and in time of need for cash it will be difficult. mutual fund gives dividends, appreciation and also has easy liquidity in case of need. also u need sell only as much as u need and not entire holding. however, it is ok to purchase suitable house for residence.
mutual funds. if you bought a $300,000 house at 5% for 30 years it will cost you :
I=PxRxT
I = $300,000 x 5% x 30 years
I= $450,000
450,000 + 300,000 = $750,000
so the house will cost you $750,000 not including maintence and up keep. if you rent it out you have too pay taxes on the money you getting from the rent. i would stick with the mutual funds for the long hual.