As I explained a few months ago, I’m looking more seriously into buying more real estate and still have many unanswered questions or things to look into so I thought I’d share a few of those thoughts..! Feel free to comment!:)
Buying A Condo For My Kids To Fund My Retirement?
I was thinking about different scenarios that would make sense for me to become involved in real estate and one scenario came to mind. It’s likely that at some point (still very far down the road) my kids will move out either for college, for their first job, etc. One idea that I had was that such a moment would be a great opportunity to buy a condo? Why then? It would help them avoid renting it, would make it easy for me to “help them out” and would likely be located in an area where I could easily rent it back once they leave. Just feels like a win-win right? Once they do end up moving on, the condo would generate decent passive income which could be used to fund my retirement in a diversified way.
Don’t Get Me Wrong, I’ll Get Started Before Then
I’m not expecting to wait 20 years to first start buying some real estate but I was thinking about this because it’s something that I’ll likely plan in advance. How? I’ll likely create a new bucket in the next few years and start putting money aside that will be used once that happens. Initially, it would be invested in higher risk assets and as the expected purchase gets closer, I would likely start moving into less volatile assets and cash. ETF’s are a perfect way to manage such a fund. I’d start in a few years, buy some equity funds and over time move to bonds and income focused ETF’s. It’s very easy to manage.
Buying A Second Home Or Renting?
My wife and I had an interesting discussion about buying a lakehouse. Every time I get the opportunity to stay at friends that own such a house, I end up asking myself if I should consider buying one at some point. It would certainly make it easy to spend quality family time on most weekends and be a nice place to own. My main concern of course is if it’s worth buying such a property or would I be better off renting? Many questions come up:
-how much money is involved?
-how much would I really end up using it?
-how does that compare to renting one when needed?
For now, we’ll continue to rent it out. We already own a condo abroad which “dictates” to some degree where we spend part of our vacations. It’s not a bad thing, far from it. We love being able to feel right at home over there. But I think it’s enough for us considering the amount of free time that we currently have. It just seems like the amount of money, time and work involved in buying and then maintaining it trumps the benefits. Yes, we could rent it out but that would likely be on a short term basis which would not work if we’re further away from it (kind of the point of owning a lakehouse right?). I’m guessing this could change later on in life but for now we’ll be renters!If you liked this post, you can consider subscribing to our free newsletters here