Invest in Real Estate or Stocks???

NANETTE · 07-22-2008, 04:30 AM

I have some amount of earnings apart from the ones that I save for my necessities. I want the earnings invested in some real estate or may be in stocks. I do have some knowledge on stocks but, earlier my cousin had invested in the stocks and had a set-back. I know that you need to be updated in that but – What is a better option from the two???

jmasters1691 · 07-22-2008, 05:27 AM

Nanette:

I'd go with real estate, especially now, because this is when you will be able to pick up some excellent deals at much lower prices. Stocks are so volatile, especially with fluctuations in oil prices.

My cousin Tim Watson is a very successful real estate investor and he could answer any questions you might have. PM me and I will put you in touch with him. Or, you can find him on the web: Real Estate Mavericks

Good luck!

jasaunders · 07-22-2008, 06:42 AM

There is NO better option of the two.

Historically, both the stock market and real estate have provided solid returns. Real estate is a slightly riskier investment than large cap stocks and thus the returns must be higher to compensate for this risk. Be wary of anyone spouting off that NOW is the right time to buy one or the other. Both the stock market and real estate are priced low right now and both would be excellent purchases as part of a long-term investment strategy. The BEST option would be a balanced portfolio of both stocks and real estate, as well as other financial instruments.

Doodyps · 07-22-2008, 09:57 AM

I would agree with saunders. Both require a good deal of research and are proven to provide nice returns. Real estate is alot more time consuming and much more responsability, but its the only way to turn 10k into 100k buy signing a piece of paper. I would avoid stocks right now unless its long term. If you are investing long term, make sure you are diversified and you have a stomach for it. You dont want to panic in the short term and take a loss. I would even try out a small investment in a large bank. There are lots of predictions that banks will recover, but then go through the same mss next summer, in an even worse way though. I would strongly consider looking into the health sector. Something with a dividend for these rough times

gofrugal · 07-31-2008, 05:29 PM

I think real estate is much better than stock. Real Estate is non movable asset, it will loose value but will never evaporate like stocks.

Mega B · 07-31-2008, 07:59 PM

Bricks and Mortar all the time.

YOLANDA · 08-30-2008, 03:53 AM

Real Estate or Stocks ---- I would prefer real estate just for the sake that I don’t know much about the stocks ….. but as the case with your cousin goes …. I would advice you to have some investments in the real estate market as the place is at a boom now and you may get good returns for the investments there. Being updated on the stock market is a must for investments there but I find investment a risk in the stock market.

VIG_Ruddell · 09-07-2008, 06:07 PM

Go real estate unless you have tons to invest in stocks. You can leverage your money in real estate. For instances, if you invest $20,000 in a stock that averages 10% return a year then at the end of the year you will have $22,000 at the end of the year if you sell, that's not including the capital gains tax that your going to have to pay. But if you use that same $20,000 on a down payment on a $200,000 home, at the end of the year, you will have about $12,000 in appreciation. How i got that was the average home in America appreciates a little more than 6% every year. But that is also very risky because your not guaranteed that you home will appreciate. And if it doesn't appreciate, you can always rent because a 10% down payment will give you more favorable mortgage payments and it will be easier to cashflow.

But there are also more tax advantages with real estate. With stocks, if you sell them you have to pay capital gains. But with property, if you sell it you can use the 1041 tax exchange to avoid paying taxes on your capital gains from the selling the property. There are tons more and I'm not going to go into depth about them here but if you have a good tax professional you'll be set.

ysuf56 · 09-16-2008, 01:10 AM

Well in my opinion you have to invest your money in real estate. There are ricks in stocks now a days the market suddenly goes down, but the value of property is just going to high. So the investment in real estate is best. There are many useful factors which make real estate investing so much popular. Now peoples generally investing there money in real estate. I had also invested in that. Well its my opinion. Hope that you will get your best.

aed343 · 09-16-2008, 07:23 AM

There are risks in both but don't let that fear stop you from investing.

There are good responses for both here in this thread. Everyone has made great comments.

Here's my suggestion, learn before you investing in anything. Don't just do it because someone says so. Research stocks and real estate and see which you understand and like better.

I have learned a lot about both but prefer stocks. But that's just me.

Remember, don't follow the flock of sheep, be the one to lead the sheep. Good luck.

island801 · 12-26-2008, 08:04 PM

Real Estate. As long as you buy really low, think of all the foreclosures out there right now. Buy them now when the prices are low, rent them now then sell them at market value when the real estate market stabalizes. Or you can just keep them as your renters will pay them all off for you in time. Stocks are really risky.

BusinessAdviser · 12-27-2008, 02:41 AM

Quote:

Originally Posted by gofrugal

I think real estate is much better than stock. Real Estate is non movable asset, it will loose value but will never evaporate like stocks.

"Evaporate like stocks"?!

BusinessAdviser · 12-27-2008, 02:42 AM

Quote:

Originally Posted by Mega B

Bricks and Mortar all the time.

"Bricks and mortar all the time." I'm confused by this.

BusinessAdviser · 12-27-2008, 02:43 AM

Quote:

Originally Posted by VIG_Ruddell

Go real estate unless you have tons to invest in stocks. You can leverage your money in real estate. For instances, if you invest $20,000 in a stock that averages 10% return a year then at the end of the year you will have $22,000 at the end of the year if you sell, that's not including the capital gains tax that your going to have to pay. But if you use that same $20,000 on a down payment on a $200,000 home, at the end of the year, you will have about $12,000 in appreciation. How i got that was the average home in America appreciates a little more than 6% every year. But that is also very risky because your not guaranteed that you home will appreciate. And if it doesn't appreciate, you can always rent because a 10% down payment will give you more favorable mortgage payments and it will be easier to cashflow.

But there are also more tax advantages with real estate. With stocks, if you sell them you have to pay capital gains. But with property, if you sell it you can use the 1041 tax exchange to avoid paying taxes on your capital gains from the selling the property. There are tons more and I'm not going to go into depth about them here but if you have a good tax professional you'll be set.

Uh, I think you should understand both options before promoting one over the other. Real estate because... "You can leverage your money in real estate"?! Can you not with stock?!

BusinessAdviser · 12-27-2008, 02:45 AM

Quote:

Originally Posted by island801

Real Estate. As long as you buy really low, think of all the foreclosures out there right now. Buy them now when the prices are low, rent them now then sell them at market value when the real estate market stabalizes. Or you can just keep them as your renters will pay them all off for you in time. Stocks are really risky.

"Stocks are really risky."

The majority of this thread is pretty ridiculous.

It all comes down to what specific investments you're looking at, what your goals are, what your income needs are, etc.