Thread: Invest in Real Estate or Stocks???

I do not claim to know real estate nor the stock market but I would rather invest in real estate. Ask legit realtors as to which location is the best.

I would also consult with your tax/financial advisor as well as a local REALTOR to consider which is better for you.

You must decide on what types of properties you will consider suitable for you-do you want to be a landlord? If not, you must add in property management to the equation. If you are considering land, you must look at the possible window of opportunity for your exit strategy. Many many factors to consider, all highly dependent on your local market. I just talked to a developer yesterday, his new development is one of the few I would even consider in my market considering in today's economy and real estate market.

I close tomorrow with a gentleman who cashed out his CD to buy land since his CD was maturing and there were no other options that were as good for him in his situation. Your situation will, of course, be different. Always look before you leap and plan for the worse but hope for the best!

I by far am no expert but I do both. Investing in stocks is giving someone money and hoping they do well and that you will make money with them. Investing in real-estate is much more hands on and you control your own fait. Yes appreciation will change by itself but if you make the correct moves you will do well. Either way you can make money or loose money, I'd rather be in control.

I may be a bit biased, since real estate investing is my profession, but I like the control you have over real estate. That being said, there are still many issues you can run into investing in real estate. For one, you will have to come up with a larger sum of money to get started, or secure some sort of financing. A good point was made that owning real estate and being a landlord can be time consuming. Even finding a good property management company is a task. Even with the negatives, in my opinion, if you buy right, it would be much harder to lose money on a cashflow real estate property than investing in the current stock market.

ALWAYS do your research. Do thorough inspections. Be sure ALL expenses are built into your cashflow formula. Most Realtors don't know all the details on R.E. investing. Be sure to shop around and find the right person for the job.

ps - I do have some money invested in stocks, but the returns have been much less than what my real estate earns me.

Diversify is always the best way to invest. I personally believe we are more closer to the bottom of the Real Estate Market than the Stock Market.

Hedge Funds are pulling serious cash out of the market. The volitilty in stocks is out of control.

Real Estate is a safe investment for the long run.

My business partner just lost a quarter of a million dollars in the stock market and is still playing with day trading to make the money back up. Real estate is hitting the bottom. In the next two years we will start seeing a incline. Right now either are risky. You must do your due diligence on either before jumping in. There are wonderful investment opportunities in Florida. Holding and renting is key for now. We are seeing bran new homes selling for less than the lot sold for. These homes are for sale as low as 20,000 dollars and within 30 minutes of the beaches. Weekend rentals gross investors insane returns and rents on homes this cheap can be 900-1000 a month on long term leases. I am a Realtor, so I would say Real Estate is the better investment, but I am not as knowledgeable in the stock market so I feel safer with RE.

The key is one thing...BANKS

No matter how good a deal is out there if the banks don't lend than what.

The days of no DOCS are gone so investors in Real estate will have to prove
full income and 2-yrs w-2's.

Now that the government owns both Freddie and Fannie I think the underwriting guidelines get tougher down the road.

Real estate if you buy in the right area and at the right price

You need to do both as you will find almost equally as good buying opportunities in both markets. what percentage you place in each depends heavely on your goals as each has its own benefits. Real estate is a much better investment option when trying to avoid taxes than stocks. Next Real estate provides more stability in value and much easier valuation. In favor of stocks is liquidity and in this investment climate that holds great weight. I prefer investing in real estate however I also invest in stocks.