I have too much money, what should I do with it?

[Sergio Mendacious]

My grandfather-in-law is paying $375 for his two bedroom in SoHo, because he's got the rent control and has been there since the very early 60s. We're paying $1700 for a studio. A studio.

[JNLister]

If you're going for individual stock investment, beyond the obvious (invest only what you can afford to lose, diversify, consider trackers if you are in for the long haul), Warren Buffet often talks of his key principle which include:

 

* it's better to buy a great company at an OK price than an OK company at a great price;

 

* only invest in something you understand;

 

* invest in companies that have something people will always want (eg Coke) and doesn't rely on trends;

 

* invest in businesses that can thrive even if an idiot is put in charge, because the chances are at some point they will be; and

 

* invest in companies that will probably always make some money rather than companies that will possibly sometimes make lots of money.

[neil]

Paying rent is for mugs, if you can possibly avoid it.

It really isn't. There are a lot of scenarios where buying a house is for mugs. It's all about your current and future living situation, I laid that out pretty clearly before. This is quite a good site to see what I mean about length of time in renting vs buying, http://www.nytimes.com/interactive/busines...lator.html?_r=0

 

New York

 

Completely different rental systems and average rent prices in this country. I'm paying less on my mortgage than I was in rent in a similar house, here in the south of the UK.

 

Did you not notice the bit on the left where you can plug in your own numbers?

[thefallenangel]

In Wales you can buy a home for under 100k quite easily so it makes renting a really poor move.

 

 

If i had money to invest and didn't have the option of a work share plan, I would go for a rental property. But depends on where in the uk you are based. The problem is the bank pays poor on an ISA for short term investment with no complications. I would not consider financial advice as it can be very hit and miss. Take time look at advice and if you are going to go into shares try and predict what outcome you want from the money realistically and consider it like gambling.

[Loki]

Paying rent is for mugs, if you can possibly avoid it.

It really isn't. There are a lot of scenarios where buying a house is for mugs. It's all about your current and future living situation, I laid that out pretty clearly before. This is quite a good site to see what I mean about length of time in renting vs buying, http://www.nytimes.com/interactive/busines...lator.html?_r=0

 

New York

 

Completely different rental systems and average rent prices in this country. I'm paying less on my mortgage than I was in rent in a similar house, here in the south of the UK.

 

Did you not notice the bit on the left where you can plug in your own numbers?

 

Yes. Putting in average rents and house prices, you're always better off after about 7-10 years. The curve becomes more interesting if you have lower rents suppressed by a rent control system, as in New York, or with long-term, fixed leases as a lot of European rental systems have, but here in the UK rent is high and increasing at a fast rate every year.

 

As a long-term investment, better to buy than rent. As your graph accurately shows. I don't think we're actually in disagreement here neil., it does depend on your circumstances as you say.