Gold, Real Estate, or Cash

Lets say I have $50,000 in the bank. Just moved back to parents house, squirreling away as much cash as fast as we can. The plan is to stay here 12 to 15 months, max!

Option 1: Buying a 6 unit apartment building and living in one of the units. Live here for 3 years then buy a home, possibly.

Pros: Living rent free for the most part. Building equity fairly quickly. Save money.
Cons: No yard, less privacy, small living quarters.

Option 2: Buy a house.

Pros: Privacy, spacious, yard
Cons: Mortgage, high real estate taxes and still going higher($5k to $10k). Wont be able to save much once living in house.

Option 3: Rent for a year after leaving parents house.

Pros: Buys more time.
Cons: Waste of money and time, indecisive.

Option 4: Buying silver and some gold and renting for a year. Then selling that gold and silver and do option 1.

Pros: Could look like a genius, risky.
Cons: Could look like dummy, rolling the dice, risky.

Option 5: Something I hadn't thought of.

Option 4 IMHO. The entire economy is hanging at the edge of a cliff ready to collapse. If you buy RE, whether rental or home, you risk being trapped in a frozen asset if and when the economy tanks. To my way of thinking, any wealth or asset that creates a paper or electronic record of it's existence is subject to the whims of the state and in extreme circumstances is subject to confiscation and taxation. And in our socialistic future, each of us will be means tested in order to recieve any government services whihc will be most everything. So you will be stripped of your assets beofre you can get health care, SSI or anything else. Physical gold and silver are private, off the grid, portable, and proven stores of value. And today's depressed prices are a screaming bargain. My advice: rent cheap, live modestly, buy as much physical gold and silver as you can afford, sleep like a baby.

Thanks Mamboni!

Hopefully it becomes more clear as the time grows near. For now I think Ill stack some more.

If you will be at your folks' for the next 12-15 months, these next 4-8 months will likely be the lowest prices at which you will be able to stack. If you are buying from an existing bankroll, you should probably front load your purchases during this earlier period, and then work to replenish your account after that. Also, I'd recommend pulling some actual paper cash to have on hand in a fire-resistant location.

Do your parents have preps? Will that be part of your expenditures over the next year?

As for real estate moves, I think that decision would depend on where the market is a year from now. If prices soften from here, I would consider a purchase. If you're really willing to buy a 6-unit apartment building, they I would consider a two-family home instead as a compromise to Options 1 & 2.

Hold onto the cash. Pull it out in physical form slowly too, like in increments of $500-1,000 every week and hide it creatively. Chances are we will go into a DEFLATIONARY crash (2008 style) before we go into an INFLATIONARY crash. During deflation prices go down and that value of your dollars goes up. I believe this is a more likely scenario at this point. Gold/silver will not go up until there's a physical shortage, because the establishment wont let them go up much anymore. There is no shortage in Silver at all right now either, so they can keep this going a number of years.


Another option is to wait till Bitcoin goes back to $2, then buy it all up again. Hehe. Watch your currency go up 25x in one year.

I like option 1. Here's why, an apartment complex could be in big demand in the next collapse. Look at what happened in the last one, all the mortgage dropped forclosures, etc. People moved out of homes into apartments. Apartments were in big demand. The second reason is the main one, if you can live rent free at the complex. If you lower your monthly bills down so low, you can weather any financial storm, or job loss.

Ideally, if you can, I'd do option 1 and save a little for gold and silver, and cash. Say 5K in gold/silver, and 5 k in cash. You could probably live for over a year on that without working if you are rent free.

Option 1 but spend some of that, maybe 5K, on food and silver.

Thanks for all the input thus far, very helpful.

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Originally Posted by Sparky

If you will be at your folks' for the next 12-15 months, these next 4-8 months will likely be the lowest prices at which you will be able to stack. If you are buying from an existing bankroll, you should probably front load your purchases during this earlier period, and then work to replenish your account after that. Also, I'd recommend pulling some actual paper cash to have on hand in a fire-resistant location.

Do your parents have preps? Will that be part of your expenditures over the next year?

As for real estate moves, I think that decision would depend on where the market is a year from now. If prices soften from here, I would consider a purchase. If you're really willing to buy a 6-unit apartment building, they I would consider a two-family home instead as a compromise to Options 1 & 2.

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Yes, I will be at my folks' place for the next 12-15 months and I do plan on adding to my stack. I may possibly purchase 1 to 2 monster boxes right now and then go ahead and sell them for cash in 12 to 15 months to use for my down payment. Now, I know this is a short term flip, but with these low prices it seems like a good idea.

My parents have minimal preps and it wont be part of the expenditures.

Quote:

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Originally Posted by Shami-Amourae

Hold onto the cash. Pull it out in physical form slowly too, like in increments of $500-1,000 every week and hide it creatively. Chances are we will go into a DEFLATIONARY crash (2008 style) before we go into an INFLATIONARY crash. During deflation prices go down and that value of your dollars goes up. I believe this is a more likely scenario at this point. Gold/silver will not go up until there's a physical shortage, because the establishment wont let them go up much anymore. There is no shortage in Silver at all right now either, so they can keep this going a number of years.


Another option is to wait till Bitcoin goes back to $2, then buy it all up again. Hehe. Watch your currency go up 25x in one year.

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Majority of cash is in the bank at the present time. I have started taking physical cash out, slowly though.

With bitcoins, it's like going for a ride on a wild bull! I'd like to stay more conservative for the time being.

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Originally Posted by Hitcher

I like option 1. Here's why, an apartment complex could be in big demand in the next collapse. Look at what happened in the last one, all the mortgage dropped forclosures, etc. People moved out of homes into apartments. Apartments were in big demand. The second reason is the main one, if you can live rent free at the complex. If you lower your monthly bills down so low, you can weather any financial storm, or job loss.

Ideally, if you can, I'd do option 1 and save a little for gold and silver, and cash. Say 5K in gold/silver, and 5 k in cash. You could probably live for over a year on that without working if you are rent free.

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I've crunched the numbers and it would be between $650 to $1100/ month out of pocket for a 15 year mortgage, including taxes. In this scenario I could still accumulate gold/silver and save cash.

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Originally Posted by Kali

Option 1 but spend some of that, maybe 5K, on food and silver.

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Ditto on that.

I'm with Mamboni on this one -- #4

I personally would stay at my parents place as long as they are OK with it [I mean by financial rewards] and if you were too. I would put a significant amount on Au/Ag.

The bad times are not close to being over [even though the Dow hit a record high] and will get much worse. Property values will continue to drop and once the effects of artificial suppression of PMs work their course, their value will rise exponentially. You can then get maybe 3-4 six unit apartment blocks [or more].

I would never stay at my parents' house, especially.... If I had already left there. How old are you?


I don't mean to sound pissy or rude , but why would you go home to mom and dad so you can save money? Would you be paying them rent and utilities? and paying for food ? Making it better for them? It should benefit them also.

Funny how boys always want to go home though?

Maybe you should just give your mom and dad a 1 to 2 monster boxes right now .