Quote:
Originally Posted by GGG
The first question would be Do you want a bigger house or do you want to live in your current house for the next x years?
The second question is do you want to vacation in the same spot every year? If you do than a vacation property might make sense but if you don't it is cheaper to just stay in hotels. They are generally very poor investments.
So if the answer is no to the above 2 questions than your just looking for investment advice. So rental property, stocks, mutual funds, bonds, etc are just various types of investments for you to consider each with their own risks and benefits.
I think the first thing you need to do is make the two emotional decisions: Bigger house, Vacation house or none first. Once those are answered you can make an investment decision on what to do for the remainder of your money
|
I don't want a larger house, but a house in a location closer to downtown. So, it would be downsizing in size, and upsizing in cost. I would like to move, but my wife wants to stay in this house for another few years. She has emotional attachment to the house, I'd just like the sell it while the prices are still high. My worst case would house prices here go down, and where I want to move they stay the same.
The vacation property, would be cheap - I am thinking < $200k for a cabin somewhere around the gulf islands or vancouver island. We like it there, and I could see myself spending large amounts of time there. It's not something that is a priority, but I don't know how things will be 30 years from now if property will still be unobtainable for a sane price. But you're right, it would be cheaper to spend money on a hotel up to some certain point. We only have so many weeks of vacation anyway.
So in short, the answer to the above questions could be considered "no". So maybe the best bet is going the investment route.