Investments

[DavePalumbo]

I was at a friends house for dinner earlier and another friend of hers who was there was talking to us about all the real-estate investing he's been doing. Dude's maybe 3 years older than me, went to school for business, already has plans for when he'll be buying his house in the tropics, etc. I felt like I was talking to a character from Wall Street or something.

But I was curious, not being much of the investment and business minded type of person myself, if many CAers think about or deal with this kind of thing. Most of my friends don't even own a house or anything

[Interceptor]

I've been thinking about a place to live. With a nice big basement for a home studio or something. I'm always looking for places to rent, but I don't think I'm financially stable enough to be purchasing ahome anytime soon.

[CaptainInsano]

A good place to start is www.morningstar.com (click the "Learn" tab).

[flex mathews]

i have a financial advisor, and a simple ira through my work. i have no idea what i'm doing so my advisor does everything for me.
if you want to make quick money, and have money to invest, real estate is where it is. i have some friends that do that, and they all drive nice cars and own a bunch of cool stuff. so i make them buy me drinks when we go out.

[BrianT]

I'm buying a house this year. Well, actually a townhouse, commonly refered to as an attached house, or a house with one major wall adjacent to another. I've been doing a lot of research lately. It depends on where you live. In Vancouver, British Columbia, Canada, where I live, housing is very expensive. I will have to move out of town. But buying a house in Greater Vancouver almost guarantees the property value will increase. This is due to the amount of Canadians and foreigners moving to Vancouver (as well as the over seas investement) because of it's beauty and good year-round weather. For example, I'm looking the buy a property between $200,000 to $220,000. In 5+ years that same property should be woth $300,000. Right now I can afford the mortgage, which is why it's not worth renting. If I buy now, I get the enjoyment of my own property, and the opportunity to sell for more in the future. Right now I rent an apartment, and I'm tired of renting aparments. I will be improving my lifestyle and future financial situation. But like I said, it all depends on where you live. Some cities are in decline as far as real estate goes.

Check out this web site: http://www.realestatetalks.com/index.php?sid=3f27e5878cb8f0c4d2f9e41479f40de1

Perhaps your area is listed.

Some people make a living playing the real estate game. If you own enough properties and become a landlord, you may only need to work very littlle to make a decent living, with enough spare time to do what you want. Again, it depends on the city. Some U.S. cities that come to mind with good real estate opportunities are: Los Angelos, San Francisco, New York, Miami. I don't know too much about the U.S. because I'm in Canada. But I can tell you this: evaluate your situation. If you can afford a mortgage, property taxes, and/or condo fees, you're much better off buying a property. Of course, if you're a freelance artist, it's gonna be much harder to show a bank a steady income. These days 0% to 5% down payment on a property is not uncommon.

In my opinion renting is throwing money down the toilet.

[Mirana]

However, I agree that renting is throwing money down the toilet.

And yet building up the funds for downpayment, taxes and other fees is not easy either. I've heard it's easier for first-time buyers to get loans, but it still seems daunting. Especially when you have loans already (car, school) and don't make much for the bank to go on. Kind of ridiculous when a morgage payment can be cheaper than rent.

[Simon.Rain]

you probably heard also the real estate investment bubble is about to burst ... well I m really no expert but what I think they are talking about is the people who made money by buying low and selling after a few years for a lot higher

BrianT is talking about buying a house which will in 5 years increase by 100 000 $. It all depends on where you buy and what you buy but some places still have these exploding real estate deals like he s about to get.

But there s another thing you can consider which for certain people isnt right for them but for others it's a nice way of making extra dollars. Just buy a triplex or a small appartment building with 4 appartments.
What happened to one of my friend is, he bought one, lives in one of the appartment and rent the 2 others... the people who are renting the other 2 appartments are paying his morgage, his appartment and also his electricity bill. so what happens if he rents the one he lives in ? he can throw some money in and buy a real house and years later, he ll have the money from the appartments as a income per months

If only it could be that simple... =P

[BrianT]

ParkerD: I'm only stating my opinion about real estate based on converstations. Even for the most accomplished real estate advisor, you cannot predict the future. You can only follow trends.

Rottendegenerate: Buying a house now might not increase in value of $100,000 in 5 years. It is a gamble. It's always a big risk. As stated above: no one can predict the future, and every city is unique. I plan to buy a house now and live in it for 20 to 30 years. I'm not trying to make money from real estate.

[DavePalumbo]

But like I said, it all depends on where you live

Yeah, Philly's booming but they don't expect it to hold out more than a couple years from what I hear. I find it incredible it's booming at all

[MEP]

Might I recommend a series of blog posts starting here 2006 Makeover, Step #1: Get your accounts in order (http://www.iwillteachyoutoberich.com/archives/2006/01/2006_makeover_-.html). Don't let the somewhat ostentatious name of the blog fool you, it's good advice. The other two articles in the series are good as well when looking to get started. The rest of the blog basically talks about investments.

Investing basically requires two things: discipline and patience.

[loomer]

I'm no expert at real-estate investing... but I would think that LA, SF, NY would be unwise choices to invest in, because the prices are already so damn high.

Couldn't be further from the truth in my experience. I own a house on Long Island, NY - and the market value from when we bought it 5 years ago astounded us. That's with absolutely no new estimate of the work and repairs we have done. The problem with buying in any of these areas like LA, SF, and NY is be able to finance it in the first place. But if you can, the real estate will be the a great investment.

[unknown_epiphany]

I am 21 and already am saving for retirement, own 600 shares of stock, squirreling away money in three cds for a house purchase, am about to get my first credit card, and have some money saved up for school. thank god my parents still let me live at home.

[unknown_epiphany]

Oh and i have medical, eye,life, and health insurance through my employer. I also have a 401k. My parents made me watch CNN and Cspan when i was younger lol. I am such a boring person i read the wallstreet journal, time, and newsweek for fun.

[unknown_epiphany]

But anyway, the whole point is i will not rent an apartment and i drive a beater of a car and i have no real personal life. all my money goes toward school, art, and my future. I seriously cannot remember the last time i even went out.

[asoir]

Does investing allow you to edit posts too?

[JERI]

Dunno if this has been mentioned, but Investing for Dummies is a pretty good book to introduce you into this sort of stuff.

I figured that if I can put together 67000, and invest them in a New Zealand bank, I can be a millionaire in 40 years.

[tongue-fu]

you know the joke got swamp land you wanna buy it?

If you just want security, and a house, well, good advice here I guess.

If you want to make it in real-estate... hmmpphh.. hah.. well, that's your game man if you wanna do it go for it there are lot's of interesting characters to meet in that business.

[vigostar]

I have been lucky enough to contribute to my 401k through my job. 12% of my paycheck goes to my 401k and the company matches 1 to 1 but, you cant stop there either. Washington Mutual has great oppertunities to purchase Mutual funds at a great price some of which were showing almost 40% return last year. i used to be very interested in business before was studying to become a financial advisor so I know a little bit but, real estate is where I want to get into. Heres a little tip that I learned while I was on vacation. I was talking to a guy that was hanging with some of my friends and we got into the whole "what do u do for a living" conversation. He told me that he does marketing but, whats more interesting is that he works for a company that develops communities so that they can become the "new vacation spot". So, he told me that in South America anywhere along the coast where they have beaches in all those "third world" countries they are started to slowly develop property. This guy bought 15 acres of beachfront property in Peru I believe for 7K. Now thats an investment! Im thinking about buying some property myself.

[MarkHarchar]

Here are some stats to make you think. I built a house in 1997. It cost me $90,000. Today, 9 years later, it appraised at $150,000. Now, you may say that I made $60,000. But, stay with me here, taxes are $2000 a year times 9 years is $18,000. I have invested $11,000 into improvements. Let's say $4000 in maintenance and maintenance equipment. $3,000 in landscaping. That is $36,000. My profit has now dropped to $24,000 over 9 years. That is $2400 a year on a $90,000 investment. That is like 3%.

Bottom line: In my opinion, buying and selling property as an investment can make you money. Buying a home and living in it as an investment may not really make you any money at all.

Just something to think about...

[DavePalumbo]

Buying a home and living in it as an investment may not really make you any money at all

though you're still better off than renting

[Simon.Rain]

check also a book called 5 magic paths to make money in real estate... well the title starts with 5 magic path... and I checked a lot of books about this subject and in most of them, all the athor does is brag at how much he made but they never, EVER, tell you how to do it... but 5 magic path explains you about everything you have to do... from what to look in a possible investement to who to contact and where to look get buyers....

[JERI]

Washington Mutual has great oppertunities to purchase Mutual funds at a great price some of which were showing almost 40% return last year.

Holy shit! Is that 40% return every year? I have gotta google this.

[Chingwa]

NYC is crazy. If you can get in do it, but it's getting harder and harder to get in every day. I bought a coop apartment 4 years ago for $168k... and according to market trends it's now worth $350k... for a friggin' apartment! That's more than a 200% increase in only a few years. Crazy shit. I keep thinking we should cash in and move to Costa Rica and live off banana Mojito's for the rest of our lives, but alas I am allergic to bugs, and addicted to this city. luckily I do know a place that serves good Mojitos....

[Chingwa]

For those youngins who are just starting their financial life I suggest the following:

short term:
----------------------
1) get a credit card
2) pay it off every month
3) open an IRA account and start putting as much as you can into it every year.
4) Open a money market and put all the money you can every month into that.

long term:
--------------
5) get married and combine your finances
6) buy a house/apt and stop paying rent
7) treat yourself to a $1 lotto ticket every other week.

[poise]

I have been thinking about getting a house in the next two years. So thanks everyone for shareing their information.
Gotta love being a grown-up(sarcastic tone):moon:

haha! thank Chingwa for that wise advice, hehe! especially the bit of treating yourself to a $1 lotto ticket, haha! :)

[JERI]

You know poise, you can try what Kyle did with his red paper clip.

[JERI]

7) treat yourself to a $1 lotto ticket every other week.


$1 Lottery tickes? Which country do you live in?

[poise]

what did Kyle do with his red paper clip?

[Chingwa]

hehehe yeah trade it for a house! now I know what to do with that used up tube of toilet paper. I've been throwin' em away all these years... gawd what a waste! :D :D :D

[DavePalumbo]

7) treat yourself to a $1 lotto ticket every other week.

that's not an investment, that's a loss

[Rascar Capac]

For those youngins who are just starting their financial life I suggest the following:

short term:
----------------------
1) get a credit card
2) pay it off every month
3) open an IRA account and start putting as much as you can into it every year.
4) Open a money market and put all the money you can every month into that.

long term:
--------------
5) get married and combine your finances
6) buy a house/apt and stop paying rent
7) treat yourself to a $1 lotto ticket every other week.

5.5) get a pre-nup

[JERI]

what did Kyle do with his red paper clip?

He's been trading stuffs for other stuffs. He started with a paper clip and he's on a year of free rent in Poneix at the moment.

http://dw.com.com/redir?destUrl=http%3A%2F%2Foneredpaperclip.blogspo t.com%2F&siteId=3&oId=2100-1025-6061438&ontId=1023&lop=nl.ex