Buy house or invest money?

paddyrg

Just remember you're gambling, pure and simple, if you're counting on the future values of anything. If you look at the US/UK markets, availability of cheap credit made a lot of people invest in property priced above its future value hoping it would keep going up forever.

Local conditions are so individual that people in UK will have negligible idea whether prices in your city will rise forever, or whether conditions will plummet or whatever. Just remember that if you think it is easy money, so do thousands of others, and between you you'll create a bubble which will burst. If you get lucky and cash out at the right time it may work, if you get greedy and keep hanging on for more, more, more, you could get stung.

Thrugelmir

rigardo2 wrote: »

Can you please explain your idea of success? Like how to identify a wave & exploit it? Thanks!

That's why a few people make lots of money and the rest either not a lot or end up being the losers.

You need to understand the market you are investing in. Assess the risk and see enough upside potential to take a speculative gamble.

Depending on the market. The influences could local, national, global, political, financial and economic. Any combination brews together to make a potent force.

AlexMac

You have already done a really good 'pro-con' analysis which suggests that you don't really need help from us amateurs who are more used to answering questions like " my landlord ate my cat- can I do anything about it " (bad joke), but are perfectly capable of taking the right decison.

In Britain right now, in cities at least, it's less attractive for small amateur dabblers like me to make money from property as the days of high inflation have gone (I more than doubled my money in three years on one house-purchase in the late 1990's but house-prices are static or even falling in some areas now). And I note the comments above and your own caution about not being able to liquidise your asset if your cash is tied up in a house. (Although here, rents are rising so it's worth buying a place to live in, if not as an investment; getting loan finance is the problem, with average UK prices at £170k and small flats in London starting at well over £200, and young peoples' wages not sufficient to secure loans)

Back to you; I'd just ask you to challenge the underlying assumptions before deciding what to do with your $40k; if you really can get 40-50% annual ROI on land without grinding the faces of the poor it's a no-brainer. Do that every year for ten years and re-invest without taking out too many more loans to buy arguably overpriced flash cars and your $40k will compound up to a $Million... (yr2-56k, yr3-80k, yr 3-110k, yr 3-160k, yr 4-225k, yr 5-310k, yr6-440k, yr 7 620k....)

But what's the catch and what's the risk level? And your attitude to risk? Over here, they say "If it sounds too good to be true, it probably isn't (true)".

But if you're willing to blow the whole $40 - and risk losing your car and rented home if you lose your job and salary - why not go for it (the land speculation option). You seem prepared to take a punt (UK slang for a gamble). Good luck