Finance, Forex and Investments

What's a better investment, mutual funds or becoming a landlord?

I'm 31 years old and I want to be secure financially when I retire. Can I make more money after 30 years by buying a house and renting it (planning on buying a $300,000 home and having renter pay half of a $2000 mortgage) or investing my money in mutual funds. I'm a teacher, so I have 403 b tax shelter annuity available to me.

Public Comments

1. which will be less of a headache...mutual funds making you money ...or a renter possibly damaging your home and the many repairs you will be liable for...not to mention you might be sued for anything concerning the home
2. Become a land lord is more comfortable than investing in mutual fund.
3. land gives u only capital appreciation and in time of need for cash it will be difficult. mutual fund gives dividends, appreciation and also has easy liquidity in case of need. also u need sell only as much as u need and not entire holding. however, it is ok to purchase suitable house for residence.
4. considering your age...i feel investing in Mutual funds is far better than investing in a property..as i feel..it requires a lot of initial investment.....which Mutual funds dont. and there are many advantages with mutual funds...say it in terms of liquidity, income , profit or capital appreciation... the best part is u have soo many options available to invest in them..and more over u get the tax benefits also... u can actually plan out..at what intervals u need the money and according to that u can plan your investment into mutual funs( i mean the option like growth or dividend) if u can tell , how much money u wanna invest now..and what kind of return that u r expecting outta your investment and how long u wanna invest , when u want u r money or the returns..i can help u out planning your investment.. any ways i suggest u to invest in mutual funds than to invest in property at this point of time considering your inputs. i wish u good luck in that... Happy investing
5. mutual funds. if you bought a $300,000 house at 5% for 30 years it will cost you : I=PxRxT I = $300,000 x 5% x 30 years I= $450,000 450,000 + 300,000 = $750,000 so the house will cost you $750,000 not including maintence and up keep. if you rent it out you have too pay taxes on the money you getting from the rent. i would stick with the mutual funds for the long hual.