How to Invest: Commodities, Real Estate, or Bonds? | Phil Town

A new fridge will use much less electricity than an old one. It may not be an investment but please look into it if yours is 10+ years oldd. Replacing it will usually pay itself back in 5- 7 years.

Great video Phil!

Hi, Phil, am in a country with 2 years bonds of 11.5% and a 15yr at 17%; is it worth investing?

i love your channel, but i have to disagree with u on bonds. i do not think u should take inflation into account for any investment. it is a sunk-cost. u will face inflation when invest in anything anyway. so why take that into account?

Hi Phil, in India land prices are going up. Please suggest what is best investment in India.

What are your criteria and numbers for investing?

Hi Phil!
I just wondering what would you do if to say, I have well managed debt about $20k under 2% interest, my car worth about the same but I renting it so I have income from it. I understand the car getting older and have to be sold one day and my debt can be paid off or invested somewhere else. Until then would say it brings me a $1000, what would you do with just 1k?
Thanks Constantine

I like this channel very educational and I'm with you right now I'm in the stock market I feel that's the way to go I have real estate before and I had a lot of problems with real estate but there still money to be made in real estate but I consider the stock market a whole lot better

Hey Phil, Is gold speculation??

Great video

Would buying etf bonds be better than sitting in cash. You could always sell the bonds if you need the cash to invest in the stocks on your wishlist that have finally reached a price that you would be willing to pay. But in the meantime the bonds would be making you some money.

Why didn't you mention ETF's Phil?

Tesla meets my standards: making good products that people want for good reasons

Phil. I was just at the class this weekend. What an amazing course!

I would define ‘Investment’ & ‘Speculation’ a bit differently. I would say a speculation is something like a religion in the sense that you have to have faith that something is going to happen. I would say that an investment is when you do your research and thus have a justifiable reason to believe that your investment is going to grow over the desired term of your investment. For example, I would consider a person who will need money in the near future (eg: if they were getting close to retirement) purchasing stocks a ‘speculation’ as they have to hope (and thus have faith) that there will not be a downturn in the near future. I would also consider ‘penny stocks’ speculation as they have not proven they will be able to grow the investment (the investor just needs to have faith that the company will be able to grow based upon management / the business model etc.). I would also in most cases consider a persons family home an investment as they have the intention to live in it for the long term (probably 20 years or more) and based upon years of historical data for that area, it will go up in value during that time.

I am so agreed with your insights, investing can enrich the life and can do it for the whole life. I am just starting, so want to meet you soon!

“…share with friends even if you don’t like them” ?

Phil you said you were going to get backlash over the real estate vs stock market comment so here my piece of backlash lol. It’s honestly a legitimately mate question, no tricks. Does the stock market still eat real estate when one manages the property and uses tax advantages and refinancing advantages to secure better returns? I’d be more than happy to explain if further explanation is needed.
Thanks! And I’m a huge huge huge fan btw, you’ve taught me so much!

On my rental house, my "free flow" is about about $600/month = $7200/yr. Like Phil says… 10x rule.. so I should have bought that house for $72000…. but I bought that house for $150k. I thought I got a good deal because I got it on 2009 when the price was really low.

10X??? NO WAY!@@!!. I thought my rental home was a good deal but NOT according to Phil. I could NEVER find such deal in real estate market.

For the gap rate do yo.u mean 10 times the free cashflow per year ? Or per how much.

If i buy a house for 225k with a deposit of 75k with a mortgage of 1k per month and the Tenet is paying that 1k per month and it is the free cashflow (cz taxes are excluded (for a certain reason relative to the city we’re in) what do you think about it ?

Or do you mean it should be 120k the whole price of the house to be a good deal ? (Which is not possible in this case due to the location of the house.

Thank you 🙂

What's the name of the guy who successfully run a mutual fund? 'Bruce…' ? (at minute 8.45). Thanks in advance.

is dressing (cloth) investment?

Investing in an auction is speculation, getting something in sale or discount is real.

The big difference between stocks and real estate in my opinion:
Yes real estat returns might be lower BUT..
The bank will give you a loan to buy & invest in real estate.
The bank will not give you money to invest in stocks.

So even though the return might be lower, you can start working with a much bigger budget in real estate, leading to that 5% return on 300k euros easily beating your 20% return on your 10k euro savings as a net result.

Might be interesting to mention in your video. I know you are a huge fan of stocks (so am I, I don't own any real estate aside from my own home), but it's inportant to mention the pro's of the other side as well.

Nice channel. Love the podcast. Keep it up!

Sure we need go go juice to get to work and back, the grocery store and back, however, we really need water and food. Why aren't more people investing in those commodities ya know the stuff you can't live without the demands always there?

Is mtg cards an investment?
For example, buying cards that will never be printed again.

It goes up in value overtime but
Not creating cashflow

Serious question.

Phil real estate is hardly give any return presently I am getting 0.2% per month and after take out all expenses I am left with 0.1% per month

10-12 cap on free cash flow (NOI) = Columbus, OH

No Phil. The best investment is: bitcoin! Just kidding man… Thanks, great all around advices in just 13 min.

Great info

U only buy bonds when u keep cash to buy equity or houses. Id never buy bonds lobg term, cuz historically bonds gave very little over inflation, ie net return is 0 or less most of time. So when i hold cash, id actually hold cash, gold and maybe max 1 year bonds

I would also say buying a house to live in is not an investment. But it's simple: you have to live somewhere. If you rent, you're paying for a service, which is great. If you buy, you're basically paying for the same, but the cost structure is different: you might pay less, the same or more just for the right to live there (your mortgage). You pay extra for maintenance, taxes and depending on the rental situation, utilities and furnishing. However, on the backend, with a "regular" mortgage where you pay off in 30 years, you end up with a paid off asset – namely your house. Chances are very high your house will be worth more than it was after 30 years, even if it's simply because of location. If you bought "close to the center" of a city, after 30 years you'll be living closer to that center compared to most other houses, since the city will have expanded.

Now, the question is: how much extra are you paying for mortgage, maintenance, taxes and all sorts of other costs, compared with the rental price for a similar house in a similar location? And with compounding interest, if you'd set aside the money left over because you chose to rent, will this be worth more after 30 years than your house might be? If so: rent, and invest. BUT: most people then just eat up that extra money in lifestyle choices. And that's why in almost all cases, home owners end up much more financially secure around pension age than tenants.

as usual great info. really like your videos. regarding owning a house I would like to share a little bit different point of view. if I am owning a house which I leave in, then I don't pay rent. so I can very much assume that I still pay the rent and consider this as an income from the house. it would even give some advantage as I don't need to pay any tax on this "income"