Save for an investment property or ROTH IRA

[Melkamu Englert]

Hi

I'm 17 year's old and I want to be a real estate inverter, in rental property's. I've been saving up money, but I'm having a hard time deciding what I should be saving up for. I'll be 18 soon and I want to know if I should put my savings in a Roth IRA or keep saving up for a property.

Thanks!

[Madison Wilson]

Hi Mekalmu! How awesome that you are getting a head start on your future!! You are ahead of 90% of your peers. I would delegate for both. A Roth IRA is a great retirement fund, however from the real estate aspect the quicker you begin to buy property (as long as you are financially prepared to manage and account for repairs), the quicker you get a head start in owning multiple properties over your lifetime. Also, be sure you have a good amount of credit history, and a great score before you apply for a mortgage if you are planning on using traditional financing. You will do awesome regardless, since you are already making a plan and heading towards property ownership. You could also consider house hacking for your first purchase to occupy your first home, and gain assistance in paying the monthly mortgage payment until you are ready to buy again! Best of luck!