Hi everyone, I need some advice regarding a situation that’s been on my mind lately. I recently managed to get out of debt and am now in a position to build my financial reserves. However, a friend with a background in real estate is urging me to purchase a pre-construction condominium. He suggested that instead of saving separately, I could allocate my savings into the condo and rent it out once it’s completed. I chose not to follow his advice, but now I am second-guessing my decision. What are your thoughts on whether I made the right choice, especially since I still haven’t started my emergency fund?
I understand your concerns and believe that building an emergency fund was a sound decision. Committing a large portion of your savings to a property, especially pre-construction, adds risk that might be too significant at this stage. In my experience, having a financial cushion allows you the flexibility to cover unexpected costs without pressure. Once your emergency fund is secure, you can evaluate more carefully if the investment aligns with your long-term goals and risk tolerance.
I really like your cautious approach. Have you thought about exploring smaller investments before diving into a big project? It’s always exciting to hear different perspectives on balancing safety and risk. What’s your next step in building your financial cushion?