I have a few questions on what I should be doing with the way the economy is going. I have inherited some money from my late Great Aunt and with my new job I am looking to buy a house. So my questions are: should I use my inherited money to put as my down payment on the house or should I keep it in the stock market (just put the money in the market with my parents money for the time being). If I do not use the money for a down payment, it would probably be a year before I could put any money down on a house. Would I get more money returned if I put it into the house with the housing market low or in the stock market.

I don't plan on trying to flip a house or sell a house that I buy for a while unless I just have to.

I really don't know a lot about the housing or the stock market so explain as much as you can.

Thanks guys in advanced.

 

Depends on how agressive you go on the stocks. It's all about risk. If you go with something that has a high risk you'll either make a lot of money or lose most or all of it. If you put it into "safe" stocks you might see a slight increase, but nothing over the top (maybe like 10%? I don't know. Could be slightly more or less, I'm not sure how to quantify it).

The housing market is in the crapper right now. You can find some really good deals on short sales or foreclosures. If you do your research and find a good house, in good condition, in a good area/neighborhood, and for a good price, then that can be a very good investment, even if you don't plan on flipping/selling it anytime soon. Most people would consider this less risky than the high risk/yield stocks while still providing more profit in the future than the low risk/yield stocks. The only catch is it will probably take awhile for the house to really gain much value, but since you're planning on living in it (at least for awhile) and not flipping in it, that's not a problem for you. Personally I'd go with a house if you can find one that fits your needs and is a good deal. All up to you and your goals/wants/needs though.

 

Where is the best place to look for deals on houses? All I know to do it just "google" homes in my area and look through the Realtor websites.

How much bargaining room do I have with the prices they list?

 

Ask around or pick a realtor randomly. You're going to need one sooner or later. Tell them your criteria and they'll find stuff for you (can probably specify you're only looking for foreclosures or short sales). They'll help immensely if they're any good at their job (which they should be if they wanna make money).

You have all the bargaining room in the world. Banks are desperate to sell and are unloading places at huge losses. You could potentially "save" $50-$100k or more if you find the right deal.

 

Will talking with a Realtor cost me anything? I went and looked at a house today and the guy who showed me the house said he a few more houses similar that he could show me. I just didn't know if he'll ask for any money from me to pay him in the long run.

 

Other than precious brain cells? Probably not.

 

Use Zillow.com

shows houses in the area. what they sold for and you dont have to search through endless websites

 

Avoid signing an exclusive agreement with a Realtor!

 

I'd vote for the house. You are unlikely to encounter a more favorable buyers' market for housing in your lifetime than we have today.

Andrew

 

No. They make money off of commission only. They just get a percentage of the sale price of the house if you buy one through them. No money up front.