2006-07-05 12:35:51 · 12 answers · asked by elvenlike13 3 in Business & Finance ➔ Investing
I would say shares. You can buy shares in a widely diversified mutual fund (or in several widely diversified mutual funds), and things going sour at one company, or in one city, will not cause you to lose all your money. Sure, the whole market can tank, but if you buy some equity shares and some bond fund shares, your losses will be contained.
But, say you buy a house or a condo in a specific neighborhood in a certain city. If crime explodes in that neighborhood, or the biggest nearby employer closes its operation, or real estate in the area in general has a few bad years, you can quickly lose wealth.
An advantage of a house or condo is that it is an investment you can live in.
2006-07-05 13:11:32 · answer #1 · answered by West Coaster 4 · 0⤊ 0⤋
Property doesn't always go up. If the neighborhood goes to shits, so does the property value. If the regional economy tanks, property values tank.
There is no foolproof investment. If you're looking for relative safety, consider bonds or brokerage CDs.
Shares are risky. Depends on how diversified or hedged you are. You can reduce some of the risk by buying options though.
2006-07-05 13:15:04 · answer #2 · answered by scubalady01 5 · 0⤊ 0⤋
It really does depend!
You said investment. Realestate is a great use of your money, especially if you are living in it!!!
However, What if you buy at the top of the market and the biggest company in the area moves? And it was your intent to sell that propeerty?!?! And what if rates are rising and you bought with a variable rate mortgage?!?!
What is your stop loss plan?!?!?
That's the nice thing about stocks...you can always put in a stop order to limit your downside, with realestate, if things go south...WHAT DO YOU DO?
That said, I am a big fan of the happy medium, REITS!!! However with rates rising and a soft housing / real estate market, I am underweight in Reits.
But, all in all it depends...if you have a job, and can affford to buy some rental property, and can afford to have it unoccupied from time to time, well, that will certainly pay in time.
2006-07-05 13:27:16 · answer #3 · answered by Nick C 3 · 0⤊ 0⤋
Shares are better and Properties are Safer.
2006-07-05 14:14:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Theory says "property always goes up"
This folks is your signal of an impending bubble burst.....They said that about the Nasdaq in 2000 if you recall...
the answer to your question: neither, buy gold and silver bullion and just wait until things get clear.
2006-07-05 13:08:29 · answer #5 · answered by -* 4 · 0⤊ 0⤋
Property of course. They aren't making it anymore.
2006-07-05 12:45:27 · answer #6 · answered by citx-.92 2 · 0⤊ 0⤋
Real Estate has had a HUGE boom recently. We bought a house for 120K and sold it for 185K less than three years later. Our current home value has gone up from 230K to280K in just ONE year......
2006-07-05 12:40:42 · answer #7 · answered by Michelle A 4 · 0⤊ 0⤋
Shares have a higher expected return, and are more liquid (shares have lower transaction costs and can be sold more quickly). However, share have more volatility.
2006-07-06 07:26:11 · answer #8 · answered by poodog13 1 · 0⤊ 0⤋
property always goes up
2006-07-05 12:37:57 · answer #9 · answered by Theory 1 · 0⤊ 0⤋
property
2006-07-05 12:40:08 · answer #10 · answered by Anonymous · 0⤊ 0⤋