Should I buy property or keep my money invested?
Deciding between real estate and market investments depends on your mobility, lifestyle flexibility, and the complexities of being a landlord versus liquidating assets. Tying up savings in a mortgage can disrupt strong market returns, while buying young in an expensive market might limit your freedom to move.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1leaving savings in ISAs to accumulate furtherDid this help you?
- 2investing randomly in ISAsDid this help you?
- 3considering buying a property to do up and rent outDid this help you?
- 4Continuing to rent until lease ends while saving monthly cash flow to pay a larger down paymentDid this help you?
- 5Using monthly cash flow instead of cashing out investments to handle mortgage debtDid this help you?
- 6Using rent versus buy calculators online to compare net financial returnsDid this help you?
- 7Continuing to rent while aggressively funding 401(k) and stock market investmentsDid this help you?
- 8Buying a less expensive home to manage affordability and handle remodeling projectsDid this help you?
- 9continuing to save and invest normally without upgrading homesDid this help you?
- 10buying a second vacation home further down the roadDid this help you?
- 11using vacation rentals instead of purchasing propertyDid this help you?
- 12keeping money in the stock market insteadDid this help you?
- 13hiring a rental agency to help manage tenantsDid this help you?
- 14Renting out the property as an Airbnb or longer-term rental to help offset mortgage costsDid this help you?
- 15Structuring alternative private financing arrangements or option-to-purchase agreements with family membersDid this help you?
- 16holding onto the property as a real estate asset for future family use or downsizingDid this help you?
- 17running comparative financial numbers between selling and renting over a target timeframeDid this help you?
- 18selling the property to capture capital gains exemptions and redeploying capital into the stock marketDid this help you?
- 19comparing the mortgage interest rate against projected stock market returnsDid this help you?
- 20putting the equity into the home purchase and investing the monthly savings from a lower paymentDid this help you?
- 21Keeping emergency cash in a high-interest savings account while maintaining a separate investment portfolioDid this help you?
- 22keeping money in a high yield savings accountDid this help you?
- 23putting money into a high yield CDDid this help you?
- 24increasing monthly IRA investmentsDid this help you?
- 25opening a separate brokerage accountDid this help you?
- 26Keeping funds in a high-yield savings account (HYSA)Did this help you?
- 27Investing in short-term bond funds or TreasuriesDid this help you?
- 28Allocating a portion to brokerage accountsDid this help you?
- 29investing in a brokerage account with stocks, ETFs, and high-yield savings accountsDid this help you?
- 30investing in REIT funds for real estate exposure without the direct management headacheDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Was thinking about buying a property but I live in London & I’m not sure a flat is a good investment, also I’m still pretty young and might move around, I’d love to buy somewhere to do up and rent out, then I see problems being a landlord etc. I don’t know if I should leave the money to let it accumulate further.”source ↗
“What’re your thoughts around the fact that we didn’t buy long ago? My understanding is the general rule of thumb is to not move until living in a house for at least 5 years?”source ↗
“Would it make more sense to sell it now, and invest the 200k equity into SPY or QQQ and just forget about the money until I need it? Or should I just keep renting it until we leave Florida for good.”source ↗
“I am literally on the same boat, except for a different state. I am holding on for now... Mostly because the house is a different kind of asset, I could invest the money but this is actual real estate I own.”source ↗
“I’m not a real estate expert but you’ve ridden a nice boom in the market, I’d sell and put the gains back to work.”source ↗
“I’m in a similar position and working through the process now. If the only goal is to make money, run the numbers on both scenarios and estimate which one will make you more over whatever timeframe is most relevant to you”source ↗
“If the rate is 7%, I'd probably take the guaranteed return and use the equity as a down payment.”source ↗
“As others are saying, it’s kind of a toss up at today’s mortgage rates, so really up to your preference.”source ↗
“The question is, if we purchase now, do we liquidate and try our best to pay down 200k to reduce the mortgage, or pay less down, and let our investments stay invested since the market has been giving good returns?”source ↗
“Me and my wife are 30 and live in a relatively lower-middle cost of living area. Right now we are renting a pretty affordable place (it costs us about $1500 total to live here per month).”source ↗
“We have considered buying a house now, but we really have no desire to have a “starter” house.”source ↗
“On one hand, cheap rent means we can be putting money aggressively into 401K and other investments, but to me it’s a boring lifestyle.”source ↗
“Well I think it’s financially feasible for sure just wasn’t sure if it’s smart. I have heard some people say houses are a bad investment compared to stock, and that it’s smarter to rent (if it’s a lot cheaper) and put the difference into stock.”source ↗
“I bought my house in February, and there’s another fully renovated house in my neighborhood for sale that I’m looking at for a second property. Would it make sense or is it dumb?”source ↗
“I don’t want to make a dumb decision, so genuinely just am asking for advice!”source ↗
“Should I finally buy a property or rent?”source ↗
“I’m really torn by this, it will massively reduce the pace at which we save, but it’s a place I cherish and could be where my wife and I, and our future kids, spend our summers (just as I did as a kid). Can we financially afford the additional burden, and is it worth it?”source ↗
“I’m debating if I should just invest the 71k or add that to the next house equity?”source ↗
“I’d like to hear some pro’s and cons to adding to house equity vs additional market exposure.”source ↗
“Advice on balancing for saving for house deposit and investing in ETFS/index funds”source ↗
“Hello! I feel like I am missing out by having a large amount of money in savings, and wanted to get a reality check.”source ↗
“Would it be wise to leave such a large amount (258k) in savings? Some thoughts I’ve had are putting some in a high yield CD (4.5%), increasing my monthly ira investments or even opening a separate brokerage account?”source ↗
“My main goal right now is saving for a house but I’m struggling with how much money I should actually keep in cash versus investing it.”source ↗
“Am I holding too much cash?”source ↗
“At the same time, feels strange to potentially have hundreds of thousands of dollars sitting in cash for several years while I'm trying to build wealth.”source ↗
“I'm also trying to balance this against retirement savings. I don't want to put so much money toward a future house that I fall behind on retirement”source ↗
Where this came up
People with this problem also raised
- 15Should I invest a lump sum all at once or spread it out?
- 8Where should I invest money I need in two years?
- 9Is a luxury home upgrade worth giving up financial flexibility?
- 11Should I sell my farmland or keep renting it out?
- 5When is it actually worth buying equipment instead of renting?
- 15Should I sell my paid off car to invest the cash?