Stocks or Real Estate
I have about 200k invested into SPY right now, and I'm wondering whether I should take this money and buy a ~1m investment property to rent out. Ideally, I could get a 10 or 15 yr mortgage to build equity quickly and make a higher return than SPY. Is this a good idea? I am mainly concerned about being able to manage real estate while working long associate hours.
Thats usually good just know the market its overvalued currently in real estate, perhaps wait for commodities to crash before the end of the year.
I could be wrong and the RE folks will probably chime in, but I notice that the multi-family properties that are 6-12 units usually have a slightly higher cap rate in the area where my parents live. It might be due to some size arbitrage where a 6 unit place is to small for REPE, but just a little to big for your average non investor. Leaveing a small pool of people that are millionaires that want the properties. Granted its only a 50-200 BPS higher than larger buildings.
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