What would you do with 100k?

[lillo9546]

Hi there thanks anyone for interesting topics!
I'd like to introduce more about the current status, but sorry in advance for my bad language, I am italian, and talk little English.

Given this, I have "inherithed" 100k; I am 28, single, m, and I live with my parents. I am currently employed with a stable 9 to 2 job, which pays 150% of my Frugal COL. This job gives me room to have a good amount of free time, which I do invest in hobbyes + learning new stuff.
Like everyone on this planet, I have some needs/urgence to satisfy right now:
1) I can't no more live at my parents house, so I have to go live elsewhere. I am searching for a place/way to live.


Here comes the question: I need a place to stay, so I need to buy a house, but, Is there a better way to use those 100k? How should one use this amount of money, as a tool to build some roots for a bigger thing? for example:
1) I could buy a 150k house, use 50k, and get 100k, 10y mortgage. (mainstream)
2) I could buy land, engage architects, bank, developers, and ask to build a 5 apartments building, using 100k as a downpayment for a 500k, 20y mortgage. I would like inside one of those apartments or I could buy a camper for 10k. Then, after 20y, I could have a cash flow from the apartments income.. but would "renting" still be there in 20y? (too risky)?
3) I could relocate where those 100k could give the higest ROI in stocks, or invested in the economic system of that country. But I still need some place to live. (USA?)
4) I could buy a camper for 10k, and buy 2 different land, in 2 different places, within Italy, for 20k each, and just enjoy life. (but who's earning money to pay for COL here?)
5) I could build an hotel, b&b, with many rooms, and make it my first job. (my city has many tourists).
6) you say

[sky]

At the moment interest rates are high, which makes it difficult to profit from any project which requires a loan. One should be very careful about knowing the cost of borrowing money.

I don't know about your area, but where I live (USA), it is expected that housing prices will fall over the next few quarters. You might want to hold your cash and wait until you start seeing good deals. All real estate is a local market, so the situation where you live will be different.

The idea to earn money from renting to others is a good one. Perhaps start to research your local market and learn about regulations. Perhaps you can rent an apartment or building and sublet rooms or parts of the house to tourists?

As far as what to do with the 100k savings, I think that dividend stocks are a good way to minimize losses due to inflation in comparison to holding cash in a savings account. But there may be some ups and downs in the next few months.

[AxelHeyst]

If I lived in Italy and was Italian and had some extra cash laying around and had to move, I would seriously look into those really cheap abandoned Italian villas I see on youtube. I would do a ton of due diligence to understand what I'd be signing up for (hidden costs, fees, regulations, codes, etc), but I'd definitely look in to it.

[Frita]

I would have my 28 year old imagine conversing with possible future versions of myself to clarify values, goals, and speed bumps. Some magical thinking could certainly be considered with reality-based balance. I would also revisit younger, completed versions of myself and review the lessons learned.

[Henry]

In all due respect, I call BS.

The great line in Saturday Night Fever: "No, Tony. You can't fuck the future, the future fucks you."

And you can substitute any word for future - fate, providence, luck, coincidence, plans, language, life, cancer, your house, your training.

All this mumbo jumbo about future selves and past lives. I would tell my 28 old self put the fucking money aside. Money is not a problem until it is problem. Have money. Education, training does not help you when the shit hits the fan. ERE is great. But no one performs open heart surgery on themselves.

Put the 100K in a safe place. And now start over. Get as far away from zero as possible.

[suomalainen]

Here comes the question: I need a place to stay, so I need to buy a house, but, Is there a better way to use those 100k?

You can rent. There's no need to conflate "I need a place to live" with "I must buy" and especially not "I must buy a place I can develop and become a landlord!" Those are three different questions, three different needs, three different capital needs, three different skill sets. 100 thousand is a lot of money to tie up in one project. I would caution against doing so unless you are already an expert in said project (construction, development, landlording, etc).

[lillo9546]

This is a very generic scheme I've done to see how cash flow would be https://imgur.com/a/mMVBvFu

[lillo9546]

If I lived in Italy and was Italian and had some extra cash laying around and had to move, I would seriously look into those really cheap abandoned Italian villas I see on youtube. I would do a ton of due diligence to understand what I'd be signing up for (hidden costs, fees, regulations, codes, etc), but I'd definitely look in to it.

Factors to consider (and I'm sure I'm missing many):
- How would you manage to create a source of income in a place with demographic, economic, social, and other abandonment?

I'm sure this interests many people from abroad, or tourists, because I am interested in the same, but for Japan, for example.

We should also take in consideration the context, which we are ERE people, but what could be your "goal" in that place? Do you need to be alone? Do you need to be with a group of people?
How would you consider how and where to live?
I always dreamt about a sort of checklist or scheme one could refer of, to decide about his life..

[sky]

That is the puzzle of life, which every person has to solve for themself. I think that people who are drawn to ERE seek freedom, autonomy and the ability to focus on quality of life. Once one gains an income source, one becomes free to choose what to do with one's time. What a person does with their life is entirely unique to the individual, and it depends on one's values, motivation and imagination.

[take2]

I don’t think developing a property with the goal of it being a financial success is a good idea without:

- a skill set in a particular or multiple areas (e.g construction, mgmt, finance, etc) to help it succeed; and/or
- a strong interest / desire to do it outside of financial gain; and
- deep local knowledge of the rental market

How much do you know about it already? If you’re starting from zero just keep in mind what you’re really talking about it starting a pseudo small business, not passively investing. That can be a huge winner if you have the capacity/skills/drive, but a sure fired way to lose money if you don’t.

Renting for a short while is likely your best bet if you do need to find your own place, unless you know for sure where you want to be. As for investing, the short term rates are quite attractive right now, even for Eurozone. If you can secure 3-3.5% rates that’s c. €3000-3500 per annum which may be upwards of 50% of your monthly rent (assuming you can find someplace for €500-600/month). That’s not insignificant and can buy you a year to learn about what you want to do with the money (whether that’s purchase a home or invest it).