Real Estate or Stock Investing?

[AussieTycoon]

Financial advisors will always tell you to diversify your portfolio. This means that you should have some stock investments as well as some real estate. You should also have liquid assets, such as a bank account, and solid investments such as bonds.

While this is all sound advice, many people cannot afford to have all of these investments. They cannot afford stock, they can’t even afford to save money. A good percentage of Australians live from paycheck to paycheck spending more than they should and not saving money. Many people have a superannuation through work and depend on that to take them into retirement.

Real estate is one of the few investments you can make that will actually work double for you. Not only, if you invest wisely, will it appreciate in value, but you can actually live in the home. A home is something that you need.

In addition to being an investment that you can actually use, if you live in your investment or rent it out, you can also usually get real estate tax breaks exclusive to homeowners.

If you are renting, you are actually paying someone else’s rent. This is not a wise investment. Although it may seem like a good idea as you don’t have the responsibility of actually owning a home, you are actually tossing your money out the window.

In addition to actually having something to show for your money that you really need, buying a home of your own will also save you money in income taxes as you can write off the interest that you pay to your mortgage company. You can also write off any real estate taxes that you pay. If you are paying rent instead of a mortgage, you are not only paying someone else’s mortgage when you can be paying yourself, you are probably getting soaked when it comes to paying income taxes.

Although buying a home may seem daunting to someone who has never before purchased property, it is well worth the investment. For many people, it is one of the few investments that they make. If you purchase a home and pay it off, you will always have a place to live. As shelter is necessary for the human condition, real estate is a wise and prudent investment.

Do not allow the current state of the market cloud your judgment when it comes to real estate investing. Financial advisors still agree that real estate is an excellent long term investment.

[sp500trading]

If you look purely at the returns, then stock is the best long term investment. At least historically it's been that way. However it can have very high volatility. The big minuses with stocks are they are investments in companies that very likely are mismanged by thieving CEOs.

www.sp500-trading.com

[ferrorolvans]

Well thats good discussion.I personally work out on both of the sectors.The difference is in real estate the profit and the outcome is higher as compare to stock market.Well a continued observation is required more in both sector but more in Stock market.

[josaphlewis]

Real estate prices don’t mechanically go up every year; sharp declines can occur. Investing in stocks as well as mutual funds has some clear benefits over real estate.

[Fliplopez]

Its not Real Estate Stocks, its the entire Equity Market that can give you good returns provided you know where and what you're investing in. Stock prices are determined by various factors. However, you can always see a trend or go through the performance chart of a particular stock for last 52 weeks so that it gives you how well a stock is performing.

[princejolly]

I like to invest in the real Estate.Nowadays market of Real Estates are Going Very High.You can get The Double With in the Very Short Time.in the Stock Market We can't take any Fix Hypothesis for the the Stock Market.You can get the more on next Day.

[AlbionColt]

I think that investing in real estate is much more beneficial. It is a long term investment. It will pay you back a good amount in future. Stock market has a good future but you never know what will happen next.

[Rohan Sharma]

Yes, I agree, investing in real estate is better than anything currently in Australia, as you may have seen the recent recession hardly affected the Australian property economy. If you have faith surely buy a property rather than rent, you still pay the same money but you are investing in something rather than renting something for the same price. It is a question for you keep or borrow.
Kind Regards,
Rohan Sharma

[keyajacob]

As per my view real estate investment is the best than stock. Real estate is often a more comfortable investment for the lower and middle classes because they grew up exposed to it only as the upper classes often learned about stocks, bond and other securities.

[kadentrom]

This is probably one of the hottest issues that have confronted a lot of stakeholders amid the recent debacles that hit major economies. Investing for big gains is a game of buying low and selling high. Investing for big gains is a game of buying low and selling high.