by matkop6 » Wed Feb 13, 2013 11:36:22 AM
I cannot agree that real estate is the way to go. Sure, market has been booming but it all comes to an end. Unfortunately I do believe in real estate crash since there has been too many developments in GTA. Although each case is different, you can't go wrong with investing in mutual funds but you have to follow the investment plan and that means that if the money was meant to be invested for 10 years, you shouldn't take it out in 2 years. Also it gives you liquidity. With the real estate there is a lot of liabilities like insurance, taxes, realtor commissions etc.
Essentially it is similar like investing into single stocks. You pay commission hoping the price will go up. If you invest in mutual funds, you have already diversified your portfolio.
One more thing, if you have excess cash to buy this property, you might as well use it for mutual funds. Power of compounding has always been working in our favor in the longer run.
Matt