Not trying to brag.. I just want financial advices. I’m a SWE without too much expertise in financials. I’m extremely lucky and my dad is quite rich. I live in the SF Bay area and he lives in a different country. He said I should go look for a house that costs around 2M and he will buy me one. Interested in buying a house in the bay area, but not sure if this is the right decision or timing. Also, I don’t need a HOUSE. A studio (or 1bd) is enough for me right now. I will just list up my situations and thoughts. I make ~250k a year. Have ~150k in liquid stock / cash No debt. Have a gf, but not planning to get married in at least 1~1.5 year. Pay $2800 for rent living in a nice studio. Not sure if I will be living in the Bay for next 5 years. (Might want to move to a different city or go back to my country) Have green card Not interested in luxuries or nice cars Given these, how would you run the money? Buy a house in cash? - this sounds stupid but given the hight interest rate these days, maybe also valid? Pay down payment, keep the rest and put it in bond (and also pay the monthly payment?) Is it wise to buy a house and rent it out right away? I guess the price will keep going up in the bay area but not sure if it is wise to buy one if Im not gonna live in it right now - given the property tax and other headaches for renting it out. Really confused :/ is there a good reddit channel to learn all these? I try to learn by reading and watching youtubes but my case is quite rare.. Thank you very much in advance.
Why are you working?
Why not? I like working for Google :P
Funniest joke I've heard all year
Get a financial advisor
Where do I get them? At a bank?
Google has partnerships. Charles Schwab and Fidelity, etc provide services for free. MoMA it.
buy the house. lease 2 rooms to people you think you want to hang out with twice a month
Wouldnt finding the right person to join be a headache as well?
Terrible reading comprehension. He has a girlfriend and his dad is rich.
Just wire me some, it sure will solve some of your problem
Buy a home in Cupertino and treat that as your investment for future. Have a mortgage debt that you will pay with your savings to have some accountability. Don’t invest in anything. Real estate in Cupertino will be great!
Is it easy to find a family to move into a full house? Do people rent the entire house? Also is it still a good investment if I might leave the region (or country) in less than 5 years?
You should invest in real estate and not buy given your situation. Other option is to consider stock market index funds, but looks like you want to invest in real estate, which is also a great option. I would do the following: 1. Identify a multi family (like a 6 plex) that is in dilapidated condition. 2. Fix it and stay in one of the units 3. Downpay just enough (like 5%) and do minimal updates 4. Rent the other 5 5. Cash out Refinance in a year and get your money bank, get the multi family cashflow and enjoy the appreciation. Do this across three or four multi family and also invest in index funds for diversification. Don’t forget to thank me in 10 years once you double the worth your father gave you
This sounds great but too complicated for a newb like me. Is there some kind of a advisor who does this for me?
You can get a financial advisor and a lawyer who specialises in property and financing.
Get laid everyday
wow
Buy a house in cash. You'll need the space sooner or later, and probably once you have it you'll realize how nice it is. Also it's just a good investment either way. Going from renting to full out owning a house in this high interest rate environment is a massive win. As others have mentioned you could rent out rooms for extra cash flow, it's not a bad idea it's just with this type of thing it's all about finding the right tenant which is a skill in itself. A bad tenant could very well make it not worth.
+1 Once you start a family, you'll need a house to stay in and settle down anyways. Plus, it'll make your married life (or life in general) easier when you're debt free and have a place to yourself that you can call home to fallback on during worse times. Not sure if the entire 2M is a good idea to spend on the house. Maybe buy another house in a state which sees a good amount of tourism (maybe Florida or Miami?) and list it on AirBnB for some extra cash flow. You can also use it for personal use during vacations etc.
I like the buying a house idea, but only put the minimum down payment required. The house appreciates on the makers value of the home, regardless of how much you put down. Use the rest of your money to invest in the market. Sure, interest rates are high right now, but they will be lower in a year and you can refinance. Paying a 4% or 5% interest rate on your home while earning 9% in the stock market, all while your home appreciates in value is a no brainer.
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