2006-08-25 15:02:54 · 10 answers · asked by The Stock Market+NBA King 2 in Business & Finance ➔ Investing
Having been in both businesses, it's the stock market... you simply have many more products to sell (stocks, bonds, mutual funds, preferred stock, syndicated stock, limited partnerships, annuities (fixed and variable), options, futures, and insurance products... not to mention financial planning and estate planning. Real estate can also be lucrative... but it really depends all on location, location, location... unless you live in a super hot area, the stock market business is the place to be.
2006-08-25 15:21:45 · answer #1 · answered by Mike S 7 · 0⤊ 0⤋
Are you investing in the stock market or becoming a licensed broker? If you are investing, it depends... The market will return better percentage returns over time, but you can usually borrow only 100% of your holdings at a time through your broker (2:1 leverage). The leverage on your house can literally be infinite with a 0 down proposition if you can get the seller to pick up the closing. More likely, you will see 5:1 leverage with a 20% down. It can really add up if the housing market heads up any time soon.
Housing should return on average 6% (if you can get someone else to pay the mortgage). @ 5:1 you'll be seeing 30% on your initial down payment.
The stock market will return on average 6-8% if you suck at it (most people do). @ 2:1 That's 12%, except you'll have to pay margin costs....
Both are important. Buy a house and invest in the markets. Learn as much as you can about both. It's this knowledge that will make you rich.
2006-08-25 15:42:17 · answer #2 · answered by Quick2Answer 3 · 0⤊ 0⤋
Depends, for the long run probably the stock market. Real estate is only a profitable business if you know what you are doing. You need to buy the right house in the right neighborhood. If you can buy a fixer upper and do the handyman work yourself, you'll save alot of money. make sure you watch your expenses so you don't end up in the hole.
2006-08-25 15:09:21 · answer #3 · answered by Fool in the Rain 6 · 0⤊ 0⤋
Stock market is more profitable for people with modest means; Real estate
is more profitable if you lot of money or can use parents money . Real estate
investing with a small budget can not make much money.
2006-08-29 11:29:28 · answer #4 · answered by Pk D 3 · 0⤊ 0⤋
Stock Market.
2006-08-26 09:26:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Hi, i know what your question means. i also think stock market is a nice place for investing.
I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.
http://www.bernanke.cn/stock-trade/
Best Wishes && Good Luck!
2006-08-25 16:02:50 · answer #6 · answered by stock_trade_expert 3 · 0⤊ 0⤋
real estate isn't as risky as the stock market. but the stock is doing good then it would be more profitable .
2006-08-25 15:09:22 · answer #7 · answered by NS42day 4 · 0⤊ 0⤋
I'd go with stocks for at least the next two years!
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
http://www.brokerforyou.com/brokerforyou/
http://www.san-diego-for-sale-by-owner.com/
http://www.downtown-san-diego-real-estate.com/
http://www.palermo-homes.com/
http://www.poway-real-estate.info/poway-real-estate-brokers.htm
http://www.los-angeles-real-estate-brokers.com/
http://www.orange-county-real-estate-brokers.com/
http://www.san-francisco-real-estate-brokers.com/
http://www.san-jose-real-estate-brokers.com/
http://www.brokerforyou.com
2006-08-26 16:09:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Real estate.
2006-08-25 15:29:08 · answer #9 · answered by Anonymous 7 · 0⤊ 0⤋
both have their ups and downs and they usually coinside with one another
2006-08-25 15:05:37 · answer #10 · answered by Amanda D 3 · 0⤊ 0⤋