Should I Invest $200,000 Instead Of Buying A House?

Should I Invest $200,000 Instead Of Buying A House?

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• The Ramsey Show (Highlights):

[MFlint-untq]

“Well that person is stupid.” 😂😂 Dave is as blunt as he can be.

[Ryan_DeWitt]

A lot of experts say Dave's 12% is way too optimistic. Now you go this guy's "friend" saying 20%. lol.

[AliceAnderson-inet]

Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside holding. I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time

[coreyadams]

There is a certain peace of mind that you gain with a paid off house.

[Stormy_Dawn]

Owning a home free & clear gives you a place to live with little bills & peace of mind. I can travel & know I have a homebase. No debt, no mortgage, no rent. I'm truly in control of all my income now, it's so freeing.

[pfeiffdog]

Just give me the 200k since you are so conflicted.

[raulgolfs]

I would like to think buying a home cash would be a great bet. Lol “that person is stupid”. 😂. 20%. On $200, 000! That guy was probably thinking about his commission when he pitched it to the guy.

[JonnyBeoulve]

I might eventually regret this but I don't want a house. I like renting an apartment in downtown so I can walk to nice places, and have a quick commute to any job I'd want in the area. I don't like the idea of having to settle in a house far away from the bus lines, and having to worry about appliances, security, etc.

[evanfutterman]

Dave is way off here. First of all the guy says he bought a business for 280k and is selling it for 600k. He then says he has 60k in debt. 600 - 280 - 60 = 260k, and thats without paying taxes on that, so take a third of that away and you are left with 170k. Dave's response is "it sounds like you have 400-500k" uh what? Putting that 160k in a mutual fund will most definitely return more than a house that generally appreciates a little more than inflation even with rent increases included. Also it completely depends on the interest rate of the debt. It may actually make more sense to pay the debt off slower if the interest rate is really low.

[sammywills]

With mortgage rates at 3% and stocks at 12% it seems like a no brainer to just borrow the money for that dirt cheap rate and invest what you would have paid in cash for the house in the stock market instead.

[That-Wanderer]

Buy a house. Pay for the whole thing right away, then you have a home of your own and don’t have payments on it, and you can definitely think about investing

[marcdonvito]

There are advantages and disadvantages to each choice.


If you buy a house, you have the advantage that you control the property, and there is no middleman skimming profit from your ownership. The disadvantage is that it is the ultimate in non-diversification. You are buying a single plot of land with a single building in a specific location, and that can turn out to be very good, or a serious mistake.


If you put your money into a total stock market index fund, you have the ultimate in diversification of your investment. You are diversified across companies, industries, and locations. But you have many middlemen all of whom are skimming little slices of profit from each enterprise.

[MisterUrbanWorld]

Since I have been selling online since the age of 14. I've learned how to buy low sell high on ebay/amazon, mobile apps, forums, etc so I would definitely take 200k, but just use 50k and turn that into 6 figures annually as an additional income. The only jobs i've ever been able to get only pay max $400-$500 a month, but on the internet I reign supreme.

[luisjiron]

That person is not just stupid. That person they spoke to is flat out greedy. All they’re trying to do is make money off of them. Unbelievable what stock brokers try and pull to convince people to invest their money. Use your heads, people. It’s not worth investing if you have debts and no savings account.

[amram]

There are massive advantages to investing it over real estate in this instance simply because it is a large lump sum. Time is such an important factor. The compounding on a sum that large will far out weigh profits from a real estate purchase (baring blackswans like covid)

[chaehenny]

Don't understand why Dave would want him to use the rest of his capital to buy 1 house! I don't think a house is a good investment. That is far from diversifying. He should invest it with an investment banker that has a good track record. Thats it. And 20% a year is achievable for sure, but not using Mutual Funds!

[Kevin_Roche]

Passive investing will not get you an annual return over 10 percent. And considering he very likely will want to touch the money in 3 to 5 years, he will only realize 4 percent per year at best. The question is how much risk you are willing to take on, and the market itself is risky at its all time high right now.

Invest if you will be active in your investments. Use the money for equity in property if not.

[gabegall]

TQQQ invested from 10/15/2019 until today 11/15/2019 yields at 14% gain. 200k + 14% = 228, 000. There's half the debt paid off. :)

[Jayjewelerofficial]

Dave doesn't really teach you how to make money he just wants you to be debt-free.But if you're smart with leveraging debt and making that debt make you money that's not a bad thing.

[truthteller]

Who said you can’t have a relationship with a broker at Schwab or even pay for a management fee with a consultant at schwab ? Or invest 25K and get a CFP and a rob advised portfolio tailored for you at schwab ?