Investing

If you have $100K on hand now, would you invest in real estate or stock ?

  • Last Updated:
  • Oct 24th, 2021 8:27 pm
[OP]
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Jun 7, 2005
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Imsmarterthanyou wrote: Definitely stocks! If you want safety BCE is currently paying 5.5%. You could buy $50K now and wait 2-4 weeks before buying another $50K. But you didn't say what other income you currently have and it does make a difference.
Our other income sources are our regular full time jobs. Most of our other investments dividend funds, index funds, and a little bit of various companies stocks.
[OP]
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Jun 7, 2005
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johnnyepy666 wrote: It depends, if I was just starting out I would buy real estate because I'm able to leverage. But if I already have a few rentals I would just invest in stock. The rentals should pay for itself in the long run. So for me I rather borrow as much money as possible and just claim intres expenses.
If the real estate market is like 10 years ago where I can bug a condo with $200K and there is always positive cash flow, I would definitely invest on a couple of condos. However, real estate market even the condo prices are crazy now and no positive cash flow. We are not sure when we will stop working, thus don't want to incur any liabilities/financial burden. Just want to do some investments to have a healthy growth instead of cash sitting in the bank depreciating every day.
[OP]
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Jun 7, 2005
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Thanks for sharing your story. That's exactly what I am worried about buying rental properties. In facts, we hear this once a while. I guess it is hard to have good tenants every year for every rental property. Just one bad one will cause enough headaches.......
Blubbs wrote: Eight years ago when I first got my real estate licence I used it immediately to buy a rental property in a sought-after area with my wife (and pay myself $9k). We thought we were careful selecting tenants. We also tried to charge a lot which in retrospect reduced tenant quality. It was a bungalow with a legal basement suite.

The first basement tenant we got never actually missed rent, but he did: 1. Hoard to the extent that the garage was full to the ceiling and the suite was an absolute pigsty; 2. Smoke in contravention of his lease in his carpeted suite causing health issues for the people above and damaging home value; 3. Have a random individual move in without permission and lie about it to my face as I stared at this other guy and the bedroom in the living area; 4. Blast music late at night causing my upstairs tenants to complain; 5. Bring back prostitutes and likely drugs to the property. I had a sheriff then phone me asking if I owned the property, and saying they needed access in order to arrest this man as he had forged his pipefitter's licence. I then found out he had also lost his job for this reason, the job which I qualified him on.

Since I am a lawyer by training I had already been to court on behalf of landlords to obtain orders for eviction, and seen what can happen when a landlord tries to evict a tenant. In one example, the female tenant had taken a hammer to every surface of the home and had also hammered hundreds of nails into random surfaces, on top of pushing a window entirely out of its frame and breaking a Kool Aid man-style hole in the basement landing to access the off limits basement suite under construction so her dog could shit down there. Given this experience, I decided to sell our property with the tenants in it less than a year after purchasing. I found a young male buyer who planned to get his large friends and force this guy to move out. I ended up netting about +$20k in the end since it was the 2014 oil boom, so it worked out. I wouldn't have made much in appreciation if I had kept the property as we are talking about Alberta here.

Now I prefer to invest only in stocks and other securities - which you can do with leverage by the way (home-equity-leveraged-dividend-growth-i ... d-2455354/). The only exception would be to buy a vacation cottage and AirBNB it when I am not there, as IMO I'd have to be about triple my current net worth to justify leaving it vacant most of the year "just because" (so maybe in 5-10 years).
[OP]
Deal Fanatic
Jun 7, 2005
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alexcalvado wrote: If you want to go real estate with only 100K just buy any well known REIT or BAM
However, if you want better return and prefer to gamble, invest it in the stock market right now

Thanks. Saw your post: Road to $10 MM. Amazing !

Any REIT and BAM you can suggest and share with us ? Thanks
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Feb 5, 2017
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rdx wrote: Thanks. Saw your post: Road to $10 MM. Amazing !

Any REIT and BAM you can suggest and share with us ? Thanks
REI.UN
However, please note that I have just sold all my REI.UN
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Jan 31, 2016
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Kawartha Lakes
If your budget is tight for an investment property I'd probably stay clear. I've had good tenants, but even with those there could be unforeseen issues such as repairs etc. If you are walking a thin line financially it can become quite stressful. I know others who I work with that have horror stories they are going through currently with tenants and I know others that appear content with their investments.

It depends on your risk tolerance, but I'd be looking at researching Bitcoin for sure and possibly some other projects in the top ten crypto market cap. (ETH, SOL, DOT, LINK etc. NOT Doge, SHIB etc) Then if you like educate yourself on DEFI/CEFI and earning yield.
Last edited by Ketchenany on Oct 15th, 2021 3:45 pm, edited 2 times in total.
Those who dance are considered insane by those who cannot hear the music - Carlin
[OP]
Deal Fanatic
Jun 7, 2005
9284 posts
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alexcalvado wrote: REI.UN
However, please note that I have just sold all my REI.UN
Thanks. You sold all because you expect it to drop soon ?
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Mar 21, 2013
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rdx wrote: Thanks. You sold all because you expect it to drop soon ?
Don't listen to him...
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rdx wrote: Thanks. You sold all because you expect it to drop soon ?
Yeap and I think I will be able to rebuy for less
REI.UN has been trading for a while between 21.50 and 22.50
That 1$ that's one year worth of dividends
Sold at 22.70$ today
And don't listen to Blubbs, he has no clue
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Nov 9, 2013
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Edmonton, AB
Blubbs wrote: Eight years ago when I first got my real estate licence I used it immediately to buy a rental property in a sought-after area with my wife (and pay myself $9k). We thought we were careful selecting tenants. We also tried to charge a lot which in retrospect reduced tenant quality. It was a bungalow with a legal basement suite.

The first basement tenant we got never actually missed rent, but he did: 1. Hoard to the extent that the garage was full to the ceiling and the suite was an absolute pigsty; 2. Smoke in contravention of his lease in his carpeted suite causing health issues for the people above and damaging home value; 3. Have a random individual move in without permission and lie about it to my face as I stared at this other guy and the bedroom in the living area; 4. Blast music late at night causing my upstairs tenants to complain; 5. Bring back prostitutes and likely drugs to the property. I had a sheriff then phone me asking if I owned the property, and saying they needed access in order to arrest this man as he had forged his pipefitter's licence. I then found out he had also lost his job for this reason, the job which I qualified him on.

Since I am a lawyer by training I had already been to court on behalf of landlords to obtain orders for eviction, and seen what can happen when a landlord tries to evict a tenant. In one example, the female tenant had taken a hammer to every surface of the home and had also hammered hundreds of nails into random surfaces, on top of pushing a window entirely out of its frame and breaking a Kool Aid man-style hole in the basement landing to access the off limits basement suite under construction so her dog could shit down there. Given this experience, I decided to sell our property with the tenants in it less than a year after purchasing. I found a young male buyer who planned to get his large friends and force this guy to move out. I ended up netting about +$20k in the end since it was the 2014 oil boom, so it worked out. I wouldn't have made much in appreciation if I had kept the property as we are talking about Alberta here.

Now I prefer to invest only in stocks and other securities - which you can do with leverage by the way (home-equity-leveraged-dividend-growth-i ... d-2455354/). The only exception would be to buy a vacation cottage and AirBNB it when I am not there, as IMO I'd have to be about triple my current net worth to justify leaving it vacant most of the year "just because" (so maybe in 5-10 years).
What part of Edmonton was your property in?
Keep calm and go long
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Mar 21, 2013
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treva84 wrote: What part of Edmonton was your property in?
Hazeldean, the north tip right by Ritchie
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Jun 5, 2017
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rdx wrote: If the real estate market is like 10 years ago where I can bug a condo with $200K and there is always positive cash flow, I would definitely invest on a couple of condos. However, real estate market even the condo prices are crazy now and no positive cash flow. We are not sure when we will stop working, thus don't want to incur any liabilities/financial burden. Just want to do some investments to have a healthy growth instead of cash sitting in the bank depreciating every day.
There is no such thing as 'healthy growth'. All investments have a risk built-in. Keep cash at the bank and the risk is inflation. Put money in real estate and the risks are fluctuation of real estate prices + shitty tenants. Put money in stocks and the risk is losing all your money.

Going back to your first post in this thread, nobody can really tell you what you should do because nobody but you has all the details about your personal life and financial situation. When I previously replied to you I based my reply on the fact you had used the word 'safer' and mentionned real estate. From the word safer I concluded you prefer an investment most likely to protect your capital. And because you mentionned RE I assumed you didn't need the money in the short or medium-term.

As you can see it is impossible to provide you with the best advice without having all the facts. At best we can provide you with guesses or ideas on what would be best for you. But you shouldn't rely too much on them.

With all that said, if you have the time and inclination my suggestion would be to buy/hold/sell stocks. You could start with blue chip companies. And remember to invest the time before investing the money ;)
Sr. Member
Nov 10, 2003
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Concord
I always consider second real estate as a form of stored wealth than investment. It is sort of like gold bars, expensive and high transaction cost.

If you look to grow your investment somewhat faster than inflation, stock market should be your choice.
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May 22, 2003
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Tokenkid wrote: Image

Personally would do Bitcoin instead.
Ether's performance has been even better.

Having said that, we just purchased a second home as a rental property to diversify our holdings. I was previously 100% invested in stocks.
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Nov 6, 2007
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tehwegz wrote: I much prefer the idea of holding securities/equities/stocks/shares on a pocket sized supercomputer that I can carry around. I know people that paid their student loans being in things like NVDA, AMD, and Apple. Companies like those are exciting and cutting edge to own while being deep value. And you literally become part of that company.

The markets are choppy so it's pretty good timing to have 100k liquidity ready to inject in to something with deep value. Sept/Oct are the worst performing months, so time is definitely on your side for "timing the market".
This is very good and practical advice. But low(er) and hold.

Time in the market > Timing the market and no one can time the market with absolute certainty.

However, that shouldn't prevent one from buying blue chips and mega cap tech after they've taken a recent dump.

Even index like VFV, QQQ, TEC or XEQT would have been perfect to dip into Sept.
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rdx wrote:
If the real estate market is like 10 years ago where I can bug a condo with $200K and there is always positive cash flow, I would definitely invest on a couple of condos. However, real estate market even the condo prices are crazy now and no positive cash flow. We are not sure when we will stop working, thus don't want to incur any liabilities/financial burden. Just want to do some investments to have a healthy growth instead of cash sitting in the bank depreciating every day.
If your not going to get positive cash flow then even if it appreciates your going to have to pay each month ton top of your investment. Whether you can afford it or not. That means you are taking double risk, if it does not appreciate or depreciates your paying money every month into a sinking asset. Not even getting into the fact that one tenant is putting all your eggs in one basket, a professional tenant will make your life hell.

So all the above now considered, your situation suggests a stock market investment is your better bet.

But where to invest is up to you, i mentioned REITS earlier, they will give you monthly dividends But are not guaranteed to go up but if your heart is set on real estate then its one option. They typically recover if they drop.
You can also invest in blue chip stocks that often give good dividends. Typically appreciate but also has a risk of drop. They typically recover if they drop.

Index funds are another option, they can also drop but also typically recover. They represent your ability to make more money than REITs and likely even blue chips. But low dividends you get more stock price appreciation instead.

And there are countless other possible investments from QQQ/TEC.TO to speculative stocks to SPACs to crypto and so much more.

So pick your poison.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
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notenoughsleep wrote: Ether's performance has been even better.

Having said that, we just purchased a second home as a rental property to diversify our holdings. I was previously 100% invested in stocks.
True.

We are fortunate to have the BTC and ETH etfs here in Canada. Simple tax free (TFSA) on ramp to the two largest blue chip cryptos. I am personally heavier in ETH over BTC.
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Go with what helps you sleep at night.

Thats my best philosophy in investing.
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rdx wrote: You are properly right. Real estate agents will tell me to buy investment properties. Financial advisors will tell me to buy stocks/funds Face With Tears Of Joy
I'm a Real Estate agent, but before that I'm an investor first. If your pool of funds to utilize is only $100k, I would stick to stocks. You do not have enough of a buffer in case anything goes wrong with Real Estate.

That being said, be careful in stock selection, and avoid MEME stocks, despite how tempting they may be.

If you are new to investing, stick to blue chips, and collect dividends, maybe allocate a small amount of your overall to a riskier trade
Real Estate Agent, MAcc, CPA, CA

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