Anonymous User wrote:Anonymous User wrote:Anonymous User wrote:Anonymous User wrote:
I agree with that, but disagree about buying real estate. You never buy real estate hoping that your house will appreciate. Normally your house just appreciates with inflation. Sometimes people get lucky, but doesn't happen always. But if you buy it as an investment, i.e. buy it with an eye towards renting it out after you move or having a roommate pay part of your mortgage, I'd go real estate over stocks every day. I'm actually looking at buying my second property. I'm the poster from before who owns the duplex.
This was my idea when I bought as a first year. Got a 3 bedroom low maintenance (read no yard/land) that is close to downtown/in a desirable area. The idea is that when I move in 5+ years, I will rent it out and someone will pay my mortgage off for me (assuming rental rates don't fall dramatically and I can't cover my mortgage). Plus, the interest tax deduction is helpful. Then again, I am the poster with only 14k in the bank and 10k in 401(K) - so maybe I am not doing it right.
Im assuming you put something down on the house so its not like you only have 24k saved. Id count your equity as well.
I used pre-practicing $$/savings for the down pay (bought before I started at the firm). So while I count it for my net worth, I don't count it as saved from my first year salary.
This was a good idea, we should do this for third years as well. I am always interested to see if people start saving more as they stay longer and are more likely to be thinking about getting out? Saving in the first year is probably hardest because (1) you are probably relocating and buying furniture, a car, etc. and (2) you are making less/may be repaying a firm salary advance.