80% real estate; 20% mutual funds
My friend and colleague in his early 40's has invested as follows:
80% real estate: 1 condo in a Colorado ski town, 2 houses in Golden, Colorado, 1 house in Burlington Vermont – all are being rented, as his own family's housing is covered separately by his employer.
20% mutual fund – I don't know which one, but I'm guessing a mainstream, standard mutual fund.
He is now thinking about buying/investing in an additional house in Golden, and he asked me what I thought.
I asked him if he thought that the housing market might be a bit overvalued right now, and he says that it's a seller's market in Golden. I've presented the case for precious metals and other more resilient assets to him before and his wife and he are somewhat intrigued, but haven't taken any action as of yet.
I don't want to spend a lot of energy trying to convince him of anything, as he's already heard some of my alternative views on saving and investment, but since he's asked me, I will have a short conversation with him about this in a couple of days.
If anyone would be willing to post anything that might be helpful to him, I will pass it along to him and make sure to show him that it came from Peak Prosperity.
P.S. As one my friend's homes is in Burlington, I have forwarded him, his wife, and another mutual friend living in Burlington the link to the Bruce Seifer podcast. It seems that if he was going to buy another property, Burlington is a better call than Golden, although Golden certainly is pretty high in its watershed, and will likely have water for longer and more consistently than some other parts of Colorado.
Never heard of Maloney until Chris's interview with him the other day. But went to his site and watched, among other things, him compare the price of gold to the Schiller median home price index. It made the choice of PMs over real estate an easy one right now. You might direct your friend to that.
I think your friend is doing right as investing in real estate is always profitable. I am saying this because even I stay in Colorado and I am also investing in a household property soon with the help of experts advice provided my mwfloridalaw .