What Would You Do With $100,000?
Back in February, SmartMoney.com listed the best places to invest $100,000—real estate, charity, a new career, art, your home, or a hobby. Of course, we were immediately interested in their comments about real estate.
While the authors maintain investing in the housing market is fairly safe over the long term, they do acknowledge that it can be volatile at times. So, how can you sidestep the volatility? In their opinion:
Forget about a house, and buy land. As the old saying goes, they aren’t making any more of it. Land on average accounted for only 10% of a home’s value in 1950. Today it’s more than 40%. “The house is like a Honda Accord — it deteriorates over time. It’s the land that appreciates,” says Morris Davis, a real estate professor at the University of Wisconsin who has studied land values.
That seems like sound advice to us. So, what would you do with $100,000?
