2006-11-20 07:31:21 · 6 answers · asked by Mr.Boombastic 3 in Business & Finance ➔ Investing
It depends on the markets and your time frame. Stocks have generally outperformed real estate in the long term but in the short term there may be some anamolies.
It is wiser to invest in stocks as they are much more liquid than real estate. You can move in/out quickly.
2006-11-24 06:30:18 · answer #1 · answered by StraightDrive 6 · 0⤊ 0⤋
Depends on your goals and your ability to actively manage the real estate investment. Rental real estate gives you excellent tax advantages if you face significant income tax, but it can be a hassle to manage and has its own kind of risk.
You can get a lot of leverge investing in rental properties, but you can also buy stocks on a margin account. It really comes down to your personal needs and goals.
Stocks and mutual funds are far more liquid than owning a rental property. If you don't like the performance of the stock or fund, you can sell it and move on quickly. A poorly performing real estate investment is a lot harder to sell in the short run.
I personally favor a mix. I have some rental properties and a modest stock portfolio, with a mix of individual stocks and a couple of index funds. I have a good retirement plan, so I don't have anything in bonds right now, but as I get older, I'll probably look at reducing the risk in the portfolio a bit.
So, if you are paying a lot of income tax, look hard at rental real estate if you can put some time and energy into managing it. If you can't or don't want to, buy an index fund like SPY and let the market do its thing until you are about 5 to 10 years from wanting to tap your assets. Then get some balance in your portfolio
2006-11-20 17:32:03 · answer #2 · answered by John M 7 · 0⤊ 0⤋
Go look at the articles at http://www.hammocksurvivalguide.com/
and check out the categories 'Real Estate', 'Property', 'Stocks Mutual Funds' and 'Investing'.
2006-11-23 05:31:38 · answer #3 · answered by David S 2 · 0⤊ 0⤋
My gut instinct says REIT's are better than stocks, but a savvy investor friend of mine said that they are riskier. Only way to find out is by doing it ourselves. The real estate market is not as hot so we may be able to buy low and sell high. Good luck.
2006-11-20 15:44:27 · answer #4 · answered by neilinhp 3 · 0⤊ 0⤋
Believe it or not it is a lot more risky!
Next places to blow up in housing prices:
San Antonio, Texas
2006-11-20 15:39:36 · answer #5 · answered by Tanya 2 · 0⤊ 1⤋
Depends. What is your financial status otherwise?? Debt??
2006-11-20 15:33:47 · answer #6 · answered by snvffy 7 · 0⤊ 0⤋