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#6163708 - 01/31/16 07:13 PM Which is safer?
Apretz Offline
Woodsman

Registered: 11/04/13
Posts: 201
Loc: Howard county
What is safer, investing in a piece of land or a mutual fund? I know there are a lot of variables in both but generally what do you think has the least risk?

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#6163721 - 01/31/16 07:18 PM Re: Which is safer? [Re: Apretz]
tlk Offline
Pro Tracker

Registered: 07/25/13
Posts: 1983
too broad a question - there are aggressive mutual funds and conservative. Land depends on where it is located and what kind of deal you get at purchase. Land is not liquid - so if you need the money quickly you cannot count on it. MF's are liquid.

Typically MF's will ebb and flow from year to year - real estate is designed, in most situations, for a long term hold.

Do not do either unless you have a solid cash emergency fund which should be at least equal to one half to one full year of your annual household income.

My advice is don't base a financial decision from a forum on the internet - so see a professional to advise you
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#6163746 - 01/31/16 07:29 PM Re: Which is safer? [Re: Apretz]
Creekrunner Offline
THF Trophy Hunter

Registered: 10/19/12
Posts: 7193
Loc: Bexar/Gillespie, hunt Terrell
My grandfather thought real estate was the only investment to have. He bought some great tracts that my family is still reaping rewards off of.

We're also paying taxes on a couple of dog lots that we've had for 50+ years with no value visible in the foreseeable future.

The point is, you have to research the hell out of it before you put your money on the table.
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#6163788 - 01/31/16 07:48 PM Re: Which is safer? [Re: Apretz]
Apretz Offline
Woodsman

Registered: 11/04/13
Posts: 201
Loc: Howard county
Thanks for the advice. I'm a younger guy and haven't owned any land myself. I've had a good chunk invested in a conservative mutual fund for the past few years and it hasn't really performed well. It's not my life savings by any means and it's not something I need to be liquid. The price of Land is anywhere form 2-4k per acre where I live (between Dallas and okc). The type of land that I am thinking about is a solid hunting property with 60-100 acres with at least 50% timber and some form of water.

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#6163932 - 01/31/16 09:15 PM Re: Which is safer? [Re: Apretz]
doogie Offline
Bird Dog

Registered: 07/17/08
Posts: 282
Loc: Hill County
always stay diversified.
I like having both, but if I had to pick one, Mutual Funds is my first choice.

With that being said, Over the last 10 years my property has done much better. (but I only buy property if its a good deal) I personally have only purchased land with the extra money I have to invest after 401K maxed out.

The property I have bought includes commercial (I use it for my business) and Ranch land (I wanted it for pleasure)
So I have not bought property for pure investment reasons.
My mutual funds have stayed flat , maybe gone up slightly since 2008 and my property has in some cases doubled or tripled in the same time frame.
I had a small property near the city on the highway that had a little hunting and a nice fishing hole on it.
since it was off the highway, I sold it for triple the purchase price a few years later. I really didn't care if I sold it or not. My hunting ranch now is much more remote, has great hunting, but I do not expect it to raise in value very quickly. I enjoy it, so this is not really an Investment property.

If you have the extra money, like to hunt, and want property of your own, I say go for it. I personally would not use property as my retirement fund.


Edited by doogie (02/01/16 10:04 AM)

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#6163997 - 01/31/16 09:53 PM Re: Which is safer? [Re: Apretz]
Creekrunner Offline
THF Trophy Hunter

Registered: 10/19/12
Posts: 7193
Loc: Bexar/Gillespie, hunt Terrell
Might be near impossible nowadays, but try for 51% or more mineral rights.
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#6164112 - 02/01/16 05:30 AM Re: Which is safer? [Re: Apretz]
tlk Offline
Pro Tracker

Registered: 07/25/13
Posts: 1983
Originally Posted By: Apretz
Thanks for the advice. I'm a younger guy and haven't owned any land myself. I've had a good chunk invested in a conservative mutual fund for the past few years and it hasn't really performed well. It's not my life savings by any means and it's not something I need to be liquid. The price of Land is anywhere form 2-4k per acre where I live (between Dallas and okc). The type of land that I am thinking about is a solid hunting property with 60-100 acres with at least 50% timber and some form of water.


over the long term for someone young like you, IMO your "safest" investment is saving a percentage (preferably try to get to 15%) of your income each and every year and leaving it alone to grow. Systematic savings in a solid, low cost mutual fund over 20-30 years is a no brainer. I also bought some land along the way but never touched my long term savings money to do so. Those who start saving at a young age for retirement will come out way ahead - compounding of money is the most powerful financial strategy there is.
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#6164135 - 02/01/16 06:29 AM Re: Which is safer? [Re: tlk]
Pitchfork Predator Offline
THF Celebrity

Registered: 01/25/13
Posts: 10825
Loc: Murphy, TX Dickens county
Originally Posted By: tlk
Originally Posted By: Apretz
Thanks for the advice. I'm a younger guy and haven't owned any land myself. I've had a good chunk invested in a conservative mutual fund for the past few years and it hasn't really performed well. It's not my life savings by any means and it's not something I need to be liquid. The price of Land is anywhere form 2-4k per acre where I live (between Dallas and okc). The type of land that I am thinking about is a solid hunting property with 60-100 acres with at least 50% timber and some form of water.


over the long term for someone young like you, IMO your "safest" investment is saving a percentage (preferably try to get to 15%) of your income each and every year and leaving it alone to grow. Systematic savings in a solid, low cost mutual fund over 20-30 years is a no brainer. I also bought some land along the way but never touched my long term savings money to do so. Those who start saving at a young age for retirement will come out way ahead - compounding of money is the most powerful financial strategy there is.


This is good advice. Liquidity should always be considered until you have most of what you own paid for. Things will change over your life span that aren't always for the better like losing your job, business, disease or accidents that take away your ability to work. If your young and investing conservatively in mutual funds you would get a better long term return by well researched property purchases. You must take more risk with growth type of mutual funds if you want to see growth from them. Buying more shares when the market is in a down cycle will help as well. If you just can't stomach the risk, real estate would be a better choice. If you go this direction it is imperative to have 6 months or more worth of savings for the reasons already mentioned because you don't want to be in a position of having no choice but to sell because you need liquidity.


Edited by Pitchfork Predator (02/01/16 01:00 PM)
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#6164656 - 02/01/16 12:17 PM Re: Which is safer? [Re: Apretz]
drycreek3189 Offline
Woodsman

Registered: 04/23/15
Posts: 102
Loc: Troup, Texas
Buying land....hands down !


( I have 217 acres for sale ) smile


Edited by drycreek3189 (02/01/16 12:17 PM)

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#6165490 - 02/01/16 09:01 PM Re: Which is safer? [Re: drycreek3189]
tlk Offline
Pro Tracker

Registered: 07/25/13
Posts: 1983
Originally Posted By: drycreek3189
Buying land....hands down !


( I have 217 acres for sale ) smile


LOL so if it was so great an investment why are you selling it?
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#6165568 - 02/01/16 09:52 PM Re: Which is safer? [Re: Apretz]
Mr. T. Offline
Pro Tracker

Registered: 11/05/14
Posts: 1618
Loc: Fort Worth - Hunt in Eastland ...
Best bet.....do both for long term.
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#6165572 - 02/01/16 09:55 PM Re: Which is safer? [Re: tlk]
cabosandinh Offline
Pro Tracker

Registered: 08/12/13
Posts: 1153
Loc: Dallas, TX
Originally Posted By: tlk
Originally Posted By: drycreek3189
Buying land....hands down !


( I have 217 acres for sale ) smile


LOL so if it was so great an investment why are you selling it?


it's time to realize capital gain

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#6165586 - 02/01/16 10:06 PM Re: Which is safer? [Re: tlk]
Ramsey Offline
Pepe' Le Pew

Registered: 12/12/11
Posts: 10462
Loc: Grayson County
Originally Posted By: tlk
Originally Posted By: Apretz
Thanks for the advice. I'm a younger guy and haven't owned any land myself. I've had a good chunk invested in a conservative mutual fund for the past few years and it hasn't really performed well. It's not my life savings by any means and it's not something I need to be liquid. The price of Land is anywhere form 2-4k per acre where I live (between Dallas and okc). The type of land that I am thinking about is a solid hunting property with 60-100 acres with at least 50% timber and some form of water.


over the long term for someone young like you, IMO your "safest" investment is saving a percentage (preferably try to get to 15%) of your income each and every year and leaving it alone to grow. Systematic savings in a solid, low cost mutual fund over 20-30 years is a no brainer. I also bought some land along the way but never touched my long term savings money to do so. Those who start saving at a young age for retirement will come out way ahead - compounding of money is the most powerful financial strategy there is.
Brilliant
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#6165623 - 02/01/16 10:49 PM Re: Which is safer? [Re: Creekrunner]
blackcoal Offline
THF Trophy Hunter

Registered: 01/19/12
Posts: 7568
Loc: 60 Mi North of DFW
Originally Posted By: Creekrunner
Might be near impossible nowadays, but try for 51% or more mineral rights.


Why 51% ???
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it is the illusion of knowledge.--Stephen Hawking

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#6173903 - 02/08/16 12:13 AM Re: Which is safer? [Re: Apretz]
drjoe Offline
Outdoorsman

Registered: 11/19/10
Posts: 61
Loc: Decatur, Texas
Land. You can hunt on it smile. They aren't making any more of it and it's disappearing
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