An individual has maybe $160,000 cash. She does not have 'normal' employment. She is an artist, a painter, where she makes minimal money, and she works elsewhere in an irregular position where she may make anywhere from zero-60,000 plus a year. She loves the Emerald Coast, but might also want to travel a bit. She sees that the economy here is depressed and housing prices have fallen significantly, and sees an opportunity for long term investment for her retirement. She is 40ish. Issues. She has found a townhouse that she would love, but hates the idea of paying $300 plus in Association fees every month. She doesn't quite undertstand all the issues associated with an Association and doesn't particularly want to pay what amounts to an additional 'rent' after buying a dwelling. She has seen some properties in the $150,000 range and wonders about placing a low bid on one, paying all cash, and having a bit left over as a cushion. She knows the concept of 'Using other people's money' in borrowing from the bank, but also knows that a $150,000 dollar house becomes over 300,000 dollars spent after 30 years. So she wonders if paying cash is smart, being that her money really won't make that much in any investment vehicle anyway, unless she exposes it to much risk. She also considers buying one of those really low dollar places, she's seen some in Panama City and Destin, which are old, and ugly, but in the $75,000 range. That would leave an even bigger cushion for her, and she could always work on making it more visually appealing. She has also thought of buying a place, like one she saw with two little houses on a piece of property, where she can rent one and live in the other. I think the price was $180,000 or so. Again, not attractive, very vanilla, but when things go back up, hopefully within the next 15 to 20 years, that too will appreciate. She wonders how the airport will affect things and if she should actually think of buying something in Crestview, or Freeport, or Niceville, though she absolutely loves being nearer the beach. She wonders if moving closer to he airport in Panama City is a smarter idea or if the benefits to 30-A will corrspond exactly to that of PC and it really doesn't matter where. She knows that any benefits from the area from the airport are years down the line. She wonders a lot. Does anyone have input on what might be her best way to invest. She has even wondered about buying something here and renting it out, moving away to try to get a taste of living in another area, but having the property here as a future investment, because she believes in this area. Any input? I realize buying real estate and investing in general is a very personal choice, but with all of the 'expert knowledge' from those on this site, perhaps someone will have something to say.
