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  1. #1
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    What would you do with 200k ?

    Ony of my uncles left me this amount and I just don't know what to do with it!

    I'm thinking of buying a house and renting it - is that a good investment? I'm 21, live in norfolk, va and I work as a web manager.

    Please advise - serious replies only!

  2. #2
    Keep Moving Forward gold trophysilver trophybronze trophy
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    Quote Originally Posted by weeble19
    serious replies only!

  3. #3
    Galactic Overlord gold trophysilver trophybronze trophy
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    Yup - I'd buy investment property. Here in NZ that would be a sensible option. Don't know about the US. Mind you, $200k wouldn't get you much here...

    I envy you though - that's some inheritance!

  4. #4
    Non-Member lostseed's Avatar
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    Renting a house out can be good money. But you'd have to look into it more since
    I've never been a landlord. If thats what you mean by renting it, you mean renting
    it out to people right?

    I wouldn't do anything soon until you have a while to sit on it and think,
    because once you spend it, it's gone. I would be carefull about renting out a house,
    if it's about $80k, it seems like a large chunk of that money.

    The most bang for your buck in land is in Texas.
    Great investment is in land in Florida, a development preferrably.
    My parents bought one for $80,000 (just the lot) and it went up to
    $200,000 in value in about 2 years.

  5. #5
    ☆★☆★ silver trophy vgarcia's Avatar
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    Quote Originally Posted by weeble19
    I'm thinking of buying a house and renting it - is that a good investment?
    Do you like being a landlord? If not, would you mind a real estate company or some other firm taking a cut of your profits while they manage the property for you?

    Sorry if I seem down on the whole renting out a house thing, but my mother-in-law just did it. Her renters turned out to be deadbeats who still owe her $10K and trashed the house.

  6. #6
    SitePoint Member illumina's Avatar
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    I'd buy myself some lakeshore property up here in Northern MN where I live.

  7. #7
    Non-Member jake4974's Avatar
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    Buying a house or property is probably a very sound investment (real estate has always treated everyone I know very well in the long run). Buying it lock, stock and barrel is NOT a particularly financially sound idea. 200K is a chunk o' change. Spend some of it on a financial advisor.
    My brother and my sister both purchased and rented out homes, as did my parents. On paper it's a good idea, I have never heard any of them say anything pleasant about it (quite the contrary). Cards tend to be really stacked against landlords. I don't know about the US but in Canada, by the letter of the law a tenant can maintain residence in your property for 3 months (with a cloud of red tape) without paying a single dollar in rent.
    Edit:

    finances can be not particularly straightforward at times. The following is a very generalized idea of what I mean. With $200K cash you should be able, with little or no credit, to secure a $200K mortgage. You buy a $200K home with the collateral loan (mortgage), and still have $200K cash to invest elsewhere. If you amortize it over 30 years. If your payment is $600/month, after 10 years you will have paid $62K, granted only $6K will be equity. In that time say the house appreciates to $300K. You sell it. After fees you have $275K, and a mortgage you only owe $194K on. You have made $81K for next to nothing but smart use of money.
    I'm no financial advisor, I recommend you talk to one

  8. #8
    ☆★☆★ silver trophy vgarcia's Avatar
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    Quote Originally Posted by jake4974
    Cards tend to be really stacked against landlords. I don't know about the US but in Canada, by the letter of the law a tenant can maintain residence in your property for 3 months (with a cloud of red tape) without paying a single dollar in rent.
    It's pretty hard to be a landlord in the US too. Laws vary by state, but getting someone evicted is difficult in most places unless you know cops and lawyers willing to help you out.

  9. #9
    SitePoint Addict JamieJelly's Avatar
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    get a kickass business going and turn that 200k in to 20m
    International calls from the UK
    Cheap International Calls

  10. #10
    is not my name biggdesign's Avatar
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    ^ i'd do that too.

    start something. if thats enough for starting business, start a small local print shop/etc
    stay hungry, stay foolish.

  11. #11
    The Mind's I ® silver trophy Dark Tranquility's Avatar
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    Quote Originally Posted by weeble19
    - serious replies only!
    Off Topic:

    200k what?

  12. #12
    SitePoint Wizard silver trophybronze trophy mizwizzy's Avatar
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    put it away in ur bank a/c until you do need it, just because you have it doesnt mean u gotta spend it, a fool and their money are easily parted as they say!

  13. #13
    SitePoint Guru ckita's Avatar
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    Start a business..or a network of sites or something..

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    SitePoint Wizard silver trophy Jelena's Avatar
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    Buying a property provides some security but is it a good investemnt? I don't think so. Just do some simple calculation when will you pay it off from rant. I would say you will need at least 15-20 years or so, which means after 15 years it will start to bring you some money.

    It really depends what you would like. If you want to make some more money with it, consider investing in real business.
    -- Jelena --

  15. #15
    Visit docquesting.com docquesting's Avatar
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    By buying an ee bond or a patriot bond you could double your money in 4/5 years guaranteed. Its a secure US Gov bond and the most guaranteed way I know of to double your money that quick. Basically you buy yourself a bond at half the maturity rate and wait till it does mature. You can also cash out ofter 6 months with no penalties. Talk to your local bank about it.

    This would be a good way to get a good return better than cds or stocks. After 6 months if you want to do something else your ok with some profit.

  16. #16
    SitePoint Wizard silver trophy TheOriginalH's Avatar
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    Personally I'd buy three properties. Two in India, one in Portugal. I'd have enough left over to live EXTREMELY comfortably in India for two years, and rent out the remaining properties in India and Portugal. No guarantees, but I'd say the likelyhood is that after two years, I could sell and have myself $500k to start the whole game again
    ~The Artist Latterly Known as Crazy Hamster~
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    SitePoint Wizard silver trophy TheOriginalH's Avatar
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    (oh, and if J1mg is reading, the 'dam project could probably be funded by the surplus as well)
    ~The Artist Latterly Known as Crazy Hamster~
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  18. #18
    Pluxus. Fred2D's Avatar
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    Quote Originally Posted by weeble19
    Ony of my uncles left me this amount and I just don't know what to do with it!

    I'm thinking of buying a house and renting it - is that a good investment? I'm 21, live in norfolk, va and I work as a web manager.

    Please advise - serious replies only!
    This is something I think of everyday. What I would to with that ammount of money.
    I'd take a shower, put on some clothes. Go to the mall and bought myself a backpack and another big bag. Bought ALOT of clothes, a new cellphone, a laptop, a digitalcamera, a printer(for the laptop), some pens, papers, stickerpapers and spraycans. Then I'd call my mom and said: "Mom, I'm going away for a while. Dont worry, I'll be back when I feel like it" Then I'd bought myself some beer, started drinking and got on a bus or train to Stockholm and gone to the airport. Taken a plane to London, hired a hotelroom for about 2 weeks. Done some streetart, gone to alot pubs and met some good friends. Then I'd take a flight to Amsterdam and partied some more for about a week or two. Doing what I like to do. Then I'd continue to some warm contry like Africa, Greece or Spain.
    That would've given me alot of life-chaning experiences I suppose.

    Then I'd head back home...

    That's what I'm gonna do when I get the chance. I'm just waiting for that moment...

    Have fun!

  19. #19
    ********* Genius Mike's Avatar
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    do you have to pay tax on that 200k?
    Mike
    It's not who I am underneath, but what I do that defines me.

  20. #20
    SitePoint Wizard silver trophy TheOriginalH's Avatar
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    Quote Originally Posted by Fred2D
    This is something I think of everyday. What I would to with that ammount of money.
    I'd take a shower, put on some clothes. Go to the mall and bought myself a backpack and another big bag. Bought ALOT of clothes, a new cellphone, a laptop, a digitalcamera, a printer(for the laptop), some pens, papers, stickerpapers and spraycans. Then I'd call my mom and said: "Mom, I'm going away for a while. Dont worry, I'll be back when I feel like it" Then I'd bought myself some beer, started drinking and got on a bus or train to Stockholm and gone to the airport. Taken a plane to London, hired a hotelroom for about 2 weeks. Done some streetart, gone to alot pubs and met some good friends. Then I'd take a flight to Amsterdam and partied some more for about a week or two. Doing what I like to do. Then I'd continue to some warm contry like Africa, Greece or Spain.
    That would've given me alot of life-chaning experiences I suppose.

    Then I'd head back home...

    That's what I'm gonna do when I get the chance. I'm just waiting for that moment...

    Have fun!
    You don't need $200k to do that. Just a couple of months hard work and some balls
    ~The Artist Latterly Known as Crazy Hamster~
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    Currently delving into Django, GIT & CentOS

  21. #21
    Non-Member crunchi's Avatar
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    i suggest you buy one of the sites in sell your site section

  22. #22
    Quality not quantity. bo5ton's Avatar
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    Buy a franchise of an already well established business.
    Or invest it into property...

  23. #23
    King of Paralysis by Analysis bronze trophy
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    Quote Originally Posted by docquesting
    By buying an ee bond or a patriot bond you could double your money in 4/5 years guaranteed. Its a secure US Gov bond and the most guaranteed way I know of to double your money that quick.
    I'd like to see a 100% guaranteed investment that pays 18% interest. The websites that I checked out on the subject said it averaged 2% above inflation which would put it at about 5% a year or doubling every 14.5 years (72/5).

  24. #24
    ☆★☆★ silver trophy vgarcia's Avatar
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    Quote Originally Posted by tke71709
    (72/5).
    Someone remembers microeconomics!

  25. #25
    Can you describe the ruckus? silver trophy MissLee's Avatar
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    Just another voice against the property rental game. Being a landlord is not fun and not worth the potential risk, particularly if you'd only have the one rental. It can get very ugly, very quickly and can consume your life if it does. If you're dead set on going that route, consider renting only to a corporation who would then offer the property as an employee getaway perk. Whatever damages or issues, you'd be covered by a well written and comprehensive lease agreement and you'd at least have a tenant with deep pockets.

    In my neck of the woods (southwest Florida), the hot money maker is purchasing pre-construction and turning upon completion, usually to the tune of 40 to 50k per unit. Planned community developments with a variety townhomes, condos, single family units....the new construction market in the 150-350k range is exploding here and across the state and most of these developments are sold out before they're even built. The demand is definitely present.

    Best of luck to you & I'm sorry about the loss of your uncle.


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