Buy a House or Invest the Down Payment Somewhere Else?

1 Reply


Spouse and I are at a crossroads. We are a somewhat young family (both 30) and have two young kids. Our first thought is the save $ to buy a new home with a warranty and rent a town home (by the water which we love) during the waiting period. The issue is that we both want to set-up our family for big returns and while a house typically appreciates in value and IF you stay in it until it is paid off you have equity, we are not completely sold on the idea of buying a home (at least right now). Other than the sentimental value of a home and the chance of equity and resale value we could really do without purchasing one. My husband owns his owns business and I have an interest in investing (beginner); I would love to invest in a retail or mixed-use development property or maybe event start-ups, but it seems complicated and I would like to do it without getting a huge loan (for commercial). Anyways, the questions are if you were in this situation what would you do? Would you just focus on planning to buy a home while renting a property or find a way to invest into commercial (maybe a REIT? I have read mixed reviews on this route). Overall, we don't want to end up renting and not have our money work for us in the interim-we want stability for our children and in addition to my husband's business something to pass down to them, but we do not feel like we have to run out and buy a house now to do that (unless that is a good idea?!) We are at a crossroads as I mentioned are are seeking any advice! PLEASE HELP!

P.S. If you have any book recommendations or any other sources of sound advice please do share. We also considered talking to a financial planner 

Thank you all in advance!

Big questions, @Alexis Alexander . A little background would be helpful for us.

  • Where do you live?
  • Where do you want to live?
  • How much do you have to invest?
  • How active do you want to be in REI?
  • What's your household income?
  • How much debt do you have?

Can't offer too much guidance without the basic info. That being said, retail and mixed-use are pretty specialized and not where I would recommend starting in REI. Depending on your location, a house-hack may be a great strategy. Especially since you don't have to be super picky about location until your kids are ready for school.

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