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Investing in Real Esate a good idea?

Discussion in 'BlackHat Lounge' started by adrien23, Apr 27, 2010.

  1. adrien23

    adrien23 Regular Member

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    Just kinda wondering about this, and hoping to start some discussion.
    Now I'm pretty young I'd say, but I've also made a decent amount of money in the last month and a half or so, which I hope will grow as time goes on.

    Now anyways, my mother was just talking to me about buying a condo with a 40k down payment. (I don't have the money yet, but I've made about half). Let's say I do come up with all the money soon, would actually purchasing a condo (in the planning phase, or being built) be a good idea? I was thinking, buy one, rent it out, pay minimal money per month (if it was small enough, my mother would even help me with it if my income stopped), and just let it grow. The Condo would be worth more immediately after being built and even more (I assume) within a few years.

    Now my goal with all of this, is to be worth 500k by the time I'm 18, 3 years from now (including all the work I do apart from just this investment, but hopefully most of it is from a largely profitable sale at that time). Alright now anyways, should I even think about an investment like this, or would it just be a bad idea?

    To be honest it's kind of wishful thinking right now, but I do believe I could come up with the rest of the money within the next month if things go well.
     
  2. bobbys

    bobbys Regular Member

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    Having a mortgage at a young age is a great way to force yourself to save, and yes it's a great idea to invest in real estate with rates at record lows and home prices down 20-30% in the past 2-3 years...just make sure you leave yourself breathing room and don't get in over your head to the point that you're struggling to make payments when business slows down and your income has a dip, which will inevitably happen at one time or another.

    God bless you for having such motivation at 16 though. Best of luck :)
     
  3. futuremills

    futuremills Regular Member

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    i wish i had the money to invest..i would be me a foreclosed condo or townhouse in vegas and rent the other rooms out to someone close to my age
     
  4. appleman

    appleman Regular Member

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    I would take your money... re invest it until you have enough money to buy it straight up.... fuck payments thats the way to do it

    as for the housing market... your looking at 10 years or more in order to make it worthy

    more importantly ur 18.... you might as well get a place to live in... quicker you got a place the better
     
    Last edited: Apr 27, 2010
  5. Talsin

    Talsin Regular Member

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    Housing market is going to crash again, now is not the time to be investing in real estate if you cant afford to buy something outright.

    Land maybe if you know what your doing, but property no.
     
  6. GreyWolf

    GreyWolf Executive VIP Jr. VIP

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    Well I lost everything when the housing market crashed. I had done pretty good, owned several rental properties as well as my own home. I just happened to be in the middle of a deal that put me in a risky position, when the mortgage crisis hit. The particular circumstances I went through caused me to lose everything I had worked to attain in the previous 20 years.

    I don't think there is anything wrong with getting in the real estate market right now, but it really is best if you could outright purchase the property. If I could do it right now I would, but I would steer away from buying new. If you can walk in with cash, your best investment is to buy forclosures.

    Why purchase a home from a builder at full value, when you can buy a home that is only a couple years old at less than half the true value.
     
  7. tygrus

    tygrus Supreme Member

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    Always buy something with a piece of land under it. Condo's in the sky aren't land.

    Personally, a good investment at your age is a duplex then move into one side and rent the other out for a few years. One side pays your mortgage for you. Then when you are debt free, do the same again until you have 2 or 3 such properties (anymore than that is going to be a headache) and by the time you are 30 or so then you will have a cool 6 or 8 G a month coming in and can finance yourself a mansion somewhere.