2006-10-26 04:38:39 · 9 answers · asked by human_way 1 in Business & Finance ➔ Investing
For me, it has been Real Estate.....I like that I am investing in something tangible....Stocks can be tricky, you are at your broker's mercy and they are NOT always after your best interest....I have tried both, and by far I trust RE much more, because I am in the drivers seat....
2006-10-26 06:24:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
many responders replied less risk in real estate. Maybe and maybe not. I think a lot might depend on where the real estate is located. I do not imagine that those who invested in New Orleans would agree with that assement. Or those who invested in real estate in Anderson, In. Real estate has one other disadvantage: real estate taxes. They can be a real problem.
I will grant that a person experienced in real estate investments would do very well. However, a person experienced in stock market investments would also do very well.
Personally, I have zero desire to invest in real estate, other than my home. I can't say that it has been a real great investment other than it saved having to pay rent and I did get a couple of tax breaks. Real estate taxes average $1500 a year. Insurance $300 a year. Maintenance about $1500 a year. Purchased in 1972 for $29,000 Current value about $150,000. Annual return before expenses= 4.95%. Subtract 34 years of taxes, insurance, and maintenance, the return comes to 0.703%. And heck that assumes one paid cash, which I did not. I took out a bank loan at 7% interest. So the bottom line is that this white elephant I call home has actually wound up costing me money over the years. But not as much as paying rent.
Equities on the other hand over the long term average about 10% annual return. If I had rather invested that $29,000 is sound equities and disreguarding taxes, that investment would be worth $740,882 today.
2006-10-26 12:56:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Stick to stocks. Try to find your balance that matches your apptitude for risk though. I only play with stocks as they are able to go through the roof at any time and much less to rise suddenly and fall two years later. The real estate market in Phoenix was hot and is now tapering off. My stocks were hot at the same time and are now even hotter. I think that you are safer in real estate, but you won't make it big unless you already have some money to start with. Good night and good luck.
2006-10-26 14:32:35 · answer #3 · answered by opsout 1 · 0⤊ 0⤋
A great site to look at if you are looking for investing ideas is http://www.top10traders.com The site lists out which investors are doing the best and what stocks they have bought. Just click on the portfolio of the best investors and you can see the stocks they like.
This is a totally free site. You can create your own portfolio of stocks with $100,000 in 'play' money, and then watch how your stocks compare against other traders. When you feel comfortable with a stock that you have in your 'play' portfolio at http:www.top10traders.com then you can go out and buy the real thing. Good Luck!
2006-10-26 12:30:04 · answer #4 · answered by jojo 3 · 0⤊ 0⤋
There's only one answer.... the correct "asset allocation" that includes both. Neither is "safer" than the other. Both can be very risky.
My portfolio is about 70% stocks (Mutual Funds, individual stocks and ETF's) and the balance between bonds,
CD's, REITS and commodities. This works well for me. But you have to choose your own allocation..... so read.. read... read....
Understand "Asset Allocation" always "understand" what you're buying... and you're 2/3rds on your way!
Good luck!
2006-10-26 12:11:19 · answer #5 · answered by Common Sense 7 · 1⤊ 0⤋
Less risk in real estate, more liquidity in stocks.
2006-10-26 11:46:21 · answer #6 · answered by Jimmy Crack Corn 2 · 0⤊ 0⤋
less risk in real estate. read tips on real estate and much more to help you on this site
2006-10-26 12:13:10 · answer #7 · answered by lushy 3 · 0⤊ 0⤋
Consider researching your own companies... right here on Yahoo! Finance. I have found some solid performers this way. Go to: http://screen.finance.yahoo.com/stocks.html
2006-10-26 21:21:09 · answer #8 · answered by Mike S 7 · 0⤊ 0⤋
WHICH COUNTRY ARE U TALKING ABOUT?
2006-10-26 12:10:18 · answer #9 · answered by slimshady3in 4 · 0⤊ 0⤋