Should I invest in real estate instead of ... - Real Property Management

? ?

Question by uriah: Should I invest in real estate instead of my 401k?
For the last 3 years or so my wife and I have toyed with the idea of stopping all 401k and IRA contributions. We max out on both, so we contribute ~,000/year. On the other hand, we could keep that money, which would be ~,000/year after taxes, and use it to invest in real estate. This would give us some additional income now, and provide for retirement income in the future as the properties get paid off. Not to mention the fact real estate can becoem an actual business that can be easily passed to our kids. As an investment real estate is AT LEAST as tex deferred as a 401k, if not more (i.e. property can simply be rolled over via 1031 exchange to totally defer taxes indefinitely. When I bring this plan up with financial planners they always tell me I?m nuts, but I?m not convinced it isn?t a better idea to use the money today to buy income generating assets, rather than stick it in a 401K and hope the bottom doesn?t fall out of the market 25+ years from now when I need the income. Any thoughts?
Thanks for the replies. As far as knowing if I?ll get possitive cash flow, I won?t buy anything unless the numbers work out (i.e. rent + deductions ? expenses = +flow). I know my area and this can be done. I don?t expect 7%+ annual appreciation. What I do expect is some inflation-proof income from an investment I can by on levarage, that somebody else (the renter) pays off. However, 25 years from now I expect the property to be worth more and there is no certainty I?ll do better gambling in the stock market. And don?t fool yorself into thinking the market is anything more than legalized gambling. As far as the managment goes, I can handle that. In addition to my day job I manage 17 units in 2 different apparment complexes on the side for my father-in-law. I know the ins and outs. You just need to find good people to work for you. I?ll continue to do my DD, but I?m inclined to use my ,000 today to build income generating assets that are tax free indefinitely.

Best answer:

Answer by Welhung
Housing prices will continue to fall. If you are trying to buy real estate for invesment purposes. . . absolutely not.

What do you think? Answer below!

Source: http://realpropertymanagement.tk/should-i-invest-in-real-estate-instead-of-my-401k/

ovarian cancer symptoms angola manny ramirez harvest moon broncos broncos alyssa campanella