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

rvbarrios: 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.

Answers and Views:

Answer by geekieintx
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

Answer by Pons
Become a land lord is more comfortable than investing in mutual fund.

Answer by sunlightsublime
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.

Answer by rapa
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

Answer by bizzbagg
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.