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.

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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 .

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Originally Posted by zap

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.

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I think today's economy has the potential to be the worst in history. The 30's were bad..... There were no social programs, food stamps, unemployment, welfare, etc to keep the masses content. No American Idol, NFL, MTV to keep them distracted. The Day of Reckoning is coming. Talking about someone moving in with parents as being a bad thing should be a thing of the past.

If he and his parents both benefit, what's the issue?

Zap, maybe you had a different relationship with your family, but in our family everyone helps each other out. Thats what family is for. Also, they wont even take a penny from us so I think they would have a hard time taking 1 or 2 monster boxes.

And if this is all you have then stay out of my thread, thanks.

I feel Zap can comment anywhere she wants. You can regard or ignore her opinion, it's your choice. I feel no-one is excluded from commenting on any thread here [unless it's "ban-able"]

Option#4 here too, but with a bit of diversification. Along with PM's, consider prepping with things that you could barter with in a collapse situation. ammo, canned foods, toilet paper, liquor, etc... Have a talk with your parents about a possible shtf scenario, and ask them how they might feel about your staying for a few years. Being younger, you would be a source of protection for them so never underestimate your value. Plan for the worst, and then if the best happens... PM's rise and you will have many more options... you have both ways covered.

To buy either apt or house now with the economy on the brink of a nosedive, where real estate prices would plummet, would be a nightmare move. I woudlnt risk it. Not even for a free place to live. You already have that. Consider yourself lucky you haven't fallen for a GF who wants you to buy her some dream house.

I'm not saying to hold cash since I have a lot of faith in the US Dollar (I don't), I'm saying to do it since people in the Gold/Silver community irresponsibly look it over in too many cases.

The collapse may not be where one day where the US Dollar no longer buys you things. There is VERY LITTLE physical cash stored in banks. If only a tiny fraction of people tried to cash out and get physical cash there wouldn't be anymore to get!

What may happen is you'll have disruptions. ATMs/Credit Cards may not work lets say. In that scenario most people/merchants will not accept Silver, or frankly know WTF to do with it. You should have several thousands of physical dollars on hand to allow you and your household to be able to take care of expenses in the interim. Another good thing about cash is you can buy a lot of stuff like ammo anonymously with it.

Most people DO NOT know WTF Silver's value is and THEY DON'T CARE!
http://www.youtube.com/watch?v=z7usCHnZ-8c

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Originally Posted by optionT

Zap, maybe you had a different relationship with your family, but in our family everyone helps each other out. Thats what family is for. Also, they wont even take a penny from us so I think they would have a hard time taking 1 or 2 monster boxes.

And if this is all you have then stay out of my thread, thanks.

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Fair enough OptionT,

But I don't , and haven't never depended on my family since I left home at 18 ,

to help me out in any way, anyhow,

I think that originally my family thought the way you and yours do, as do my parents, and other family members do today, but when you are the only one who has a pot to piss in..... and all of them want you to help them out and ,,, even when they won't help themselves, It gets pretty disgusting, again ... how old are you?

Funny you would get upset about my post, standing on your own 2 feet is a bad thing?

Taking care of your mom and dad upsets you?

Yep I think at your age you should give mom and dad a monster box!

And nope I won't stay outta your thread, since it is disgusting, grow up and be a man and take care of those who took care of you!

Zap, your post did not upset me at all, just responding to it. I don't take this for granted and do feel very very blessed to have a great family. Taking care of my parents does not upset me, not sure where you got that from. Im in my late twenties and have two little ones and a third on the way. Ive grown up a long time ago.

I may consider buying the 6 unit apt. bldg, rents are up, people need a place to live; mortgages are harder to get these days even though money is cheap, things I'd have to know first; where is the apt bldg? how much is it? what's the rental/occupancy history? how old are you?

I know someone who did something like that around 1999-2000, got a mtg and bought a multiple unit property for around $400k, today it's assessed at +/- $1.2 mil, and that's not market value, the individual will probably sell out in a few years, they used it as a retirement venture

Well thanks for the response, and All the best to you and your family my friend .

Willie, Im in my late twenties, the building is in the suburbs of Chicago, prices are between $500,000 to $695,000. Rents are between $900 to $975 for a 2bed 2bath unit.

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Originally Posted by Shami-Amourae

I'm not saying to hold cash since I have a lot of faith in the US Dollar (I don't), I'm saying to do it since people in the Gold/Silver community irresponsibly look it over in too many cases.

The collapse may not be where one day where the US Dollar no longer buys you things. There is VERY LITTLE physical cash stored in banks. If only a tiny fraction of people tried to cash out and get physical cash there wouldn't be anymore to get!

What may happen is you'll have disruptions. ATMs/Credit Cards may not work lets say. In that scenario most people/merchants will not accept Silver, or frankly know WTF to do with it. You should have several thousands of physical dollars on hand to allow you and your household to be able to take care of expenses in the interim. Another good thing about cash is you can buy a lot of stuff like ammo anonymously with it.

Most people DO NOT know WTF Silver's value is and THEY DON'T CARE!
http://www.youtube.com/watch?v=z7usCHnZ-8c

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Holy smokes, this video is both terrifying and exciting. The general ignorance of silver and money is astounding; and yet over the last 10 years gold and silver have outperformed all other investments, even with this general apathy and underinvestment. So what's exciting is to imagine what the price of silver will do when these idiots get slapped out of their stupor by the coming inflation. They'll all start running to silver...after it passes $100, guaranteed.

Well. If you will be with parents for a year that is a good thing. I would try to compensate your parents somehow even if they try to turn it down. I borrowed $10,000 from my mom one time and paid it back 2 years later. She didn't want any interest but I just wrote up a check for $11,000 and gave it to her.

During this time maybe put 1/2 into PM's and half cash. Being too heavy PM's could screw you if they do not perform as you expect.

I would also stock up on food. Copy canning and rotating is a good place to start. It is a very good investment because long shelf life foods will continue to get more expensive and you will end up saving money and having a stockpile. Once you have a 3-6 month supply you can wait for sales or coupons to load up on what you eat on a regular basis.

I like the apartment idea but would move out of Chicago if possible. Moving to a more pro-liberty state should be a priority.

Another option would be a rural acreage where you can do some gardening and get some grazing animals to provide some of your food. The land doesn't need to be in the hicks, could be driving distance to work but get out of the suburbs unless you go with the apartment.

OptionT,

I would like to apologize to you for my rude comments on this thread directed at you, I could give a big speww about this or that, but all in all it was just mean and nasty and uncalled for.

You seem to be a nice young man and I am sorry.

Its ok zap, apology accepted and no hard feeling.

Wish you all the best!