What to do with a small pot of money
#16
Re: What to do with a small pot of money
bloody hell
no guarantees, no guarantee on the preservation of capital & definitely not for the faint of heart eh!
we are talking simple investments & the likelyhood the OP (inexperienced at clever investing) will lose money, sleepless nights, dumb investment advisors & stockbrokers ....
no guarantees, no guarantee on the preservation of capital & definitely not for the faint of heart eh!
we are talking simple investments & the likelyhood the OP (inexperienced at clever investing) will lose money, sleepless nights, dumb investment advisors & stockbrokers ....
So do you think a balanced diversified portfolio holds more risk than the all eggs in one basket property route in Vancouver at this time? I'm curious.
#17
Re: What to do with a small pot of money
along those lines, if considering this option - look at an income property that you could also live in, along the line of - live upsatairs & rent the basement apartment, or a separate entrance duplex or triplex, even a rooming house.
Make sure you screen the good paying tenants, take no crap & that the rent pays at least all the utilities & maybe some of the mortgage
says this old fella .....
Make sure you screen the good paying tenants, take no crap & that the rent pays at least all the utilities & maybe some of the mortgage
says this old fella .....
Easier said than done. The tenant who cost me most money only did so when she left after 5 years. Another pair who treated the place poorly had about 5 identities between them.
Unless you have multiple places and build in the losses of unrented periods or you're just looking to get some rent occasionally, you might just have to accept the occasional loss that a problem brings.
Of course, if you're on site, as it were, it's easier to keep an eye (or ear) on things. You might notice that U-haul parked in the drive and the furniture being loaded up.
Unless you have multiple places and build in the losses of unrented periods or you're just looking to get some rent occasionally, you might just have to accept the occasional loss that a problem brings.
Of course, if you're on site, as it were, it's easier to keep an eye (or ear) on things. You might notice that U-haul parked in the drive and the furniture being loaded up.
For the OP, one property, live in it & rent out the basement or the part of the property, know the landlord tenant act, rules etc - and be bloody hard nosed, something we learned quickly, as have others.
Bristol we did the rooming house ( five rooms) & never an issue - case by case I suppose
#19
Re: What to do with a small pot of money
I don't think anything these days, I'm liquid totally liquid 90% cash at all times as long as the capital is preserved & keeps up with inflation, not leveraged one penny - we're good, I think. We are past done with investing in the market or property... sorry can't comment on that.
#21
Re: What to do with a small pot of money
$100k straight to the market (no RRSP or TFSA) - what would you guarantee yourself as a return in 12 months from today with preservation of capital?
Go for it... its your own hard earned money, not borrowed, not leveraged, simple mad money
#22
Re: What to do with a small pot of money
turn the flame up on this [OP are your reading this lot?].....
Suppose (not if) you could buy an income property that you live in, in which 25 % of the mortgage & expenses are paid for by a tenant - is that a good investment?
Lets say its not 25%, its only 15% - is it still a good return on investment
We are not taking into account any capital appreciation
Factor in that you have a walk away situation
Suppose (not if) you could buy an income property that you live in, in which 25 % of the mortgage & expenses are paid for by a tenant - is that a good investment?
Lets say its not 25%, its only 15% - is it still a good return on investment
We are not taking into account any capital appreciation
Factor in that you have a walk away situation
#23
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Joined: Jan 2015
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Re: What to do with a small pot of money
Hmm thanks, I am reading -- appreciate the perspectives from anyone (including the cheese enthusiasts )
... thinking ...
... thinking ...
#24
Re: What to do with a small pot of money
I would normally 'say what I mean & mean what I say' to that comment [personally], but I'm way too polite an old fella.
$100k straight to the market (no RRSP or TFSA) - what would you guarantee yourself as a return in 12 months from today with preservation of capital?
Go for it... its your own hard earned money, not borrowed, not leveraged, simple mad money
$100k straight to the market (no RRSP or TFSA) - what would you guarantee yourself as a return in 12 months from today with preservation of capital?
Go for it... its your own hard earned money, not borrowed, not leveraged, simple mad money
I'm still curious if you believe a balanced diversified portfolio of ETF's, REITS, Preferreds, with dollop of cash, etc is riskier than buying an investment property in Vancouver at this time, and why.
#25
Re: What to do with a small pot of money
so your other thread about investing...
Our daughter & her OH had room to open an RRSP account [not done previously]. They both work, they saved a few pennies to the point they could have adeposit for a house.
What they did was to open a daily interest savings RRSP in the first week January. For that, they got a tax refund which landed in their account end March
In April under the home buyer plan, they withdrew the RRSP money tax free add to the tax refund to buy a fixer upper income property
What is the Home Buyers' Plan?
Three years later they are getting income from the tenants which is paying back themselves into the RRSP (fully paid back end of this year), continue to manage mortgage & expenses thanks to the tenants & the property has appreciated which is something I told them not to look for.
They have re-mortgaged & now have 100% mortgage, because they have the equity after fixing it up & because the property value has gone up.
Their mortgage they are paying is equal to what they were paying in rent living in the city of Toronto. The extra money covers utilities ++
Seems simple enough... who knows
Our daughter & her OH had room to open an RRSP account [not done previously]. They both work, they saved a few pennies to the point they could have adeposit for a house.
What they did was to open a daily interest savings RRSP in the first week January. For that, they got a tax refund which landed in their account end March
In April under the home buyer plan, they withdrew the RRSP money tax free add to the tax refund to buy a fixer upper income property
What is the Home Buyers' Plan?
Three years later they are getting income from the tenants which is paying back themselves into the RRSP (fully paid back end of this year), continue to manage mortgage & expenses thanks to the tenants & the property has appreciated which is something I told them not to look for.
They have re-mortgaged & now have 100% mortgage, because they have the equity after fixing it up & because the property value has gone up.
Their mortgage they are paying is equal to what they were paying in rent living in the city of Toronto. The extra money covers utilities ++
Seems simple enough... who knows
Last edited by not2old; Jun 26th 2015 at 7:12 pm.
#26
Re: What to do with a small pot of money
I'm not sure what the question is but you cannot guarantee anything, and 12 months is very short term especially with property investments.
I'm still curious if you believe a balanced diversified portfolio of ETF's, REITS, Preferreds, with dollop of cash, etc is riskier than buying an investment property in Vancouver at this time, and why.
I'm still curious if you believe a balanced diversified portfolio of ETF's, REITS, Preferreds, with dollop of cash, etc is riskier than buying an investment property in Vancouver at this time, and why.
What is your investment ? & please do not use past history as an indicator
#27
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Re: What to do with a small pot of money
What about one day if you have a mortgage on an existing property? Would you plow ALL money into the mortgage or would you invest it elsewhere?
#28
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Re: What to do with a small pot of money
Buying property in and around Vancouver at current prices imo is definitely not a low risk option.
#29
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Re: What to do with a small pot of money
True - the prices are so ridiculous...and inventory is blindingly low. A friend suggested Surrey or Langley but I am not sure about those areas - can you get good tenants? Are they better priced etc.
But fundamentally agree, paw339..
Not sure what options there are - interest rates are minimal, equities are at record highs also
But fundamentally agree, paw339..
Not sure what options there are - interest rates are minimal, equities are at record highs also
#30
Re: What to do with a small pot of money
Today, depending on your age, your circumstances, kids, in-laws etc....
Suppose you are 50 years old, two kids have left the nest & are mortgage free.
Suppose, you have some RRSP's, no TFSA, you have just kept on paying off the mortgage to a manageable rate which is about 25% outlay to someone who is renting.
Suppose, you have 100% mortgage on a property you've had for 20 years, the payments are $800/mth, you have between the RRSP & TFSA $500,000, your mortgage is only $200,000.
So many variables, so many choices - are you both still working or just one of you - is the one earner earning great money, if so having not contributed to an RRSP for 10 years could make a spousal RRSP contribution in the OH name equal to almost the tax they paid in the previous year & get a big tax refund say $40k ++, then 2+ years later take the RRSP money out with minimal tax