$30k: real estate or stocks?
May 22, 2009 1:58 PM Subscribe
I will receive $30k (canadian) as an inheritance. I'd like to invest it to start getting some revenue out of it. I have a few questions.
posted by anonymous to work & money (15 answers total) 1 user marked this as a favorite
My first idea was to buy an apartment building. I live in a countryside region (on the border of being suburb...) that's currently going through the fastest growth of population in the province. I could get a 3 apartments building for around $300k, so I'd have a cashdown of 10% (I have a few thousand saved, but I'd keep it for eventual renovations). Revenues (before expenses and taxes) would be about $24k/year (full occupancy, which isn't a problem). I have time to invest for maintenance and all, so I won't count the hours spent. Could I get a better return just by putting my money in some sort of fund? By the way I would not live in the buidling, but would stay in the rented house I currently occupy.
Another factor to consider is that I would like to buy a house for myself in perhaps 3-4 years, and wondered if having an apartment building help to finance the house, or if I should do it the other way around (get a house, and use that to finance the building, assuming that the house would cost me $200k minus the 30k).
As you can see, this is a little vague, but then I'm really not too sure about what's the best way to make that 30k a long-term investment. Our combined family revenue is about 60k. This is in the beautiful province of Quebec.
So: (1) Assuming I have time and willingness, is buying a property to rent a better investment--ie. pays more (for long-term revenue) than a typical fund for $30k?
(1) which one should I buy first, personal house of apartment building?
I hope there are enough infos!