Should I Invest $200000 Instead Of Buying A House? Get a FREE trial of our life-changing Financial Peace University today: …
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22 comments
I don't agree with paying off debt first like he is suggesting. If you have a mortgage or loan @ 3%, why would you pay it off when you can use that money to get a possible return (averaging) of 11% per year. Utilize debt to your advantage.
Dave's approach is the ultra safe approach, which I understand works for some people because of their risk tolerance, but if you want to build wealth faster, and still pretty damn safe in my mind, then utilize debt to your advantage and work the margins. In the example above you're making on average 8% on your money, whereas if you paid off your debt, you'd just be saving the 3% on interest.
Proopsy modular homes are currently a promising investment for the future, and with their recent surge in value and growing stability, they offer attractive returns. However, a lack of understanding often deters potential investors.
I reached $90k today from renting and reselling modular homes from Proopsy. Thank you for all the knowledge and insights you've shared with me over the past few months. I began this journey in November 2024. Financial education is essential for over 70% of the population, as only a few are truly literate in this area.
I lost over $80k when everything started to tank. Not because I was building in a bad neighborhood that went belly up. I was just stupid to build, and because that's what everyone said, it's more profitable than prefab homes. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found Proopsy to recover my money, at least $10k profits weekly. Thanks Proopsy.
Proopsy prefab homes are definitely on my radar now, especially with Trump’s policies. With all the market uncertainty, this might be a good sector to explore for growth opportunities.
You work for 40yrs to have $400 – 500k in your retirement, Meanwhile some people are putting just $27k in a pre fab Proopsy home for just few months and now they are multi millionaires by renting and reselling them. I pray that anyone who reads this will be successful in life
That’s a tough call. Investing $20k could potentially grow your money significantly over time, especially if you put it in the stock market or other high-growth investments. But buying a house can also be a great investment, especially if property values in your area are rising
I’m 20 years old, lost my dad half a year ago and have just received 350k inheritance. Would it be smart to grow my money in stocks while I'm still in college and then pay down mortgage afterwards, or should I go for real estate investing first since I'm still young?
I’m late to the real estate game, but I’m aiming for some serious ROI.
You get 20 percent on glasgow housing stock in the low demograph areas. Ive even had 30 percent before. Been doing it since 2010.
Even for Dave Ramsey this video is way too short time wise as we very little about the guy's financial situation. He sells the business for a nice gain but after that what is he going to do for income after the sale. Does he have an emergency fund and NOT the meager 3 to 6 months BS more in the range of 1 year plus.
I'm all for home ownership – and I mean that – however before you buy you better be prepared for what that entails AND that means MONEY! Has he been saving for retirement, do they have children or expecting to have kids? Dave is being what I call "House Horny" before he knows any very basic details about this family's financial situation.
Buying a home that your are living in and paying taxes, insurance, maintenance, closing costs, realtor fees and repairs on really isn't creating a revenue stream for you. It's actually an expense. The S & P 500 has a lifetime average return of around 11 percent with dividends reinvested. So in five years that 200,000 k turns into 337,011 giving you a $137,011 return. Seems like a no brainer to me. Renting is almost always cheaper than owning because you aren't the one the paying taxes, insurance, maintenance, closing costs, realtor fees and repairs. You can also leave whenever you want without waiting months to sell. Real estate has yielded a 4 percent historical return vs. 11 or 12 percent with dividends reinvented with the S & P 500. Buying a single family home that you live in is really a lifestyle choice which is fine especially if you have a family and plan to stay in one place for a long time. But if you are a single person who's not planning to have a family and you aren't committed to living in one place for a long time just invest in the S & P and watch it grow.
The 20% is dumb but the idea as a whole is not.
If you're expecting somewhere between 7-10% annual return you can pay off that debt in 3 years and even make some money on top of that.
I'd buy the house but definitely not for cash – that has to be the absolute dumbest advice I've ever heard in my life, you'd want to do the exact same thing you did with that debt of 60k. You take out a loan for the house and put the 200k in a mutual fund and pay the debt off with the 7-10% yearly return, at the end you get the house, you keep the 200k and even make some money on top of it while paying the debt off. Ye it takes you about 10 years to pay it off but you're basically completely free to do whatever you want by the end, you get your house and you're fully retired.
XRP pump it up
Don't call a broker. Just buy a a total-stock market index fund with minimal fees, e.g. Vanguard's VTSAX. The broker will just charge you fees, and he/she won't beat the market.
Don’t mistake confidence for intelligence. Dave’s advice works well for most people who struggle psychologically with debt. However, the blanket approach of prioritizing debt payoff above all else is shortsighted and stupid.
Yes
It's still a very valid question whether you should buy a house for cash, or continue renting and invest that money.
This guy is such a fraud. Don’t go with Schwab but there’s a list of advisors I deal with lol. GTFO. Here’s some advice free of charge. Invest in Schwab’s ETFs like SCHD for dividends and SCHG for growth both have low expenses ratio. Thank me later.
This video was made in 2019 when you could buy a nice house for 4-500k
I just bought a condo earlier this year. The interest is high at 6.8% but my stock market account made 39% this year. I will be investing the money.
thanks Dave, you are the man!