in making money, what are the pros and cons of eachim thinking more of long term, I assume in real estate investment you can play it much more safer without losing heaps of money, but in stock money comes in faster, and it can lose faster too s and cons of them would be nice, thanks for the answers!
Stock market - You can make money in short or long term. Very liquidable but more risky. Real Estate - You can only make money in long term. Not liquidable but safe.
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Real Estate: People can relate to real estate easily as it is an appreciable and tangible asset. There are two main types of real estate: commercial and residential. Investing in real estate is not easy as it is not monotonous. A thorough analysis of the pros and cons of investing in various types of real estate must be done (A separate topic of discussion by itself) before deciding how we are going to make money out of real estate. Pros and Cons of real estate investments Pros of real estate investments It results in tax deductions It is an appreciable asset – prices have appreciated to nearly 20% in the United States from the year 2012-2015 If we sell a property and invest in a similar one , we are not liable to any tax; Cons of real estate investments For real estate to appreciate it takes time and we cannot sell it easily. Real estate prices either increase at a slow rate or stay flat – housing prices rose by 6% in 2015 and they are predicted to rise by 3% in 2016 as surveyed. The closing cost can be a lot in terms of commission and taxes Pros and cons of stocks Pros of stocks Stocks are easy to sell. Stocks often do better than real estate in a year . Stocks can be reallocated even into a retirement account Stocks tend to increase a company’s growth. Cons of stocks Stocks are very unstable and depend heavily on economic situations. When the economy is bad stocks do really poor. Sometimes decisions related to stocks can be illogical within the market. We are always in the danger of our stocks getting dissolved due to bankruptcy
You said I assume in real estate investment you can play it much more safer without losing heaps of money WRONG assumption. The neighbors (or tenants) from hell can move in, the roof and boiler needs to be replaced. You nice tenants found mold. A city tree next to your property falls down, destroys a car and the owner sues you because you didn't advise the city that it was dieing and a danger. With the stock market, it can be riskier if you invest in the hot tip pennies or easy money scams some people here like to hipe. Or it can be safer if you invest in dividend paying blue chip stocks. Good stocks do go down in value, but in the past, they have always come back. Since 1926, there has never been a 20 year time period where the S%P 500 index would have lost money. Plus, with the stock market, you can also invest second hand in real estate, where you can own a well diversified selection of professionally managed properties via REITS and leave handling the tenents from hell, and the cost of a new roof to the REIT pros.
stocks are a one off buy and don't need maintanance real estate are subject to condition eg.area, natural disasters, maintanence
