I’m 31 and have most of my assets invested in the stock market. I’m trying to decide if I should leave the money invested and continue contributing yearly or take 1/4 out to use for a down payment on a condo. I feel torn because both options seem to have long-term benefits and risks.
My main goal is to build long-term wealth and have enough to retire.
Part of me thinks it makes sense to keep the investments growing, especially since I have a longish time horizon still and compound growth could really help me over time.
At the same time, I worry about rising rent. I’m worried that continuing to rent for too many more years could hurt me financially in the long run. Buying a condo could provide more stability, build equity and protect me from future rent increases. However I also know that owning property comes with added expenses like maintenance, taxes, insurance and HOA fees.
I’m trying to figure out what financial position will help me most over the next 20 to 30 years. I want to make the smartest choice to be able to retirement and have financial security
Let’s just say I don’t love being an adult and these things I have to plan for keep me up at night.
Take some out of market and buy condo?
byu/mannerhazel ininvesting
Posted by mannerhazel
5 Comments
I think if you’re 31 and have $383k of your own money invested you’re smart enough to do the math. If it was inheritance or something like that then get a financial advisor to the math. Condos seem like a hit or miss and really depends on location and your job and how expensive renting is. I just rent because it’s cheaper than any condos or houses when you factor in HOA fees and taxes where I live. And that money invested in the market offsets the returns anyways
Depends a lot on where you live and how long you plan to stay. If you are gonna marry and have kids also.
Single family homes seem to hold their value and/or increase vs condos in most cities.
Keep it in champ
The current limitation that you’re presenting is your lack of knowledge.
It seems you’ve done well to accrue this much at that age but still lack the know-how of how to use it.
You reference being invested as a little thing that doesn’t offer much other than price appreciation, is what I’m reading from you.
You try and claim that buying a condo could provide more stability build equity and protect you from future rent increases. These assumptions alone indicate that you really don’t know the potential of properly investing your money in the market.
You have enough to where unless you really want to have a condo, you’re only adding additional risk and complexity to your long-term growth versus properly investing.
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