Taking Investment decision

[Elmebrigge]

I would like to have opinion on the investment decision whether to invest in real estate or go for stock investment.Investment decisions are always tough to take in proper time.Every one wants to invest where there is maximum ROI with
minimum risk.But when you look at the market you can rarely see such a sector which fulfills all the requirements. But real estate presents best possible combination of both requirements.

[chadcharlie]

They both have intrinsic risks, and I know people who are doing well in both vehicles. I also know lots more who are doing poor in both!

Try both strategies. Look at the requirements for both and decide what works best for you. I pulled out a 10K loan from my retirement account a few years ago to do a stint in day-trading. For a year and a half I was at my desk every trading day between 9:30 and 4.

After evaluating my actual gains, they were barely above S&P (which means I was a poor trader, and I was WAY under capitalized!), and I worked a whole lotta hours on that! In the end, I leaned toward swing trading, and now I like even longer term trend following, and giving that to someone else to manage. It's not as sexy, but it frees up your time!

I think real estate is just as viable, and I've been looking at opportunities for the last 6 months in NY. HOWEVER, it's going to have its similar pitfalls, and you need to really understand what you're jumping into.

There are tax implications in everything, the exchange of money should be run like a business, yada, yada...there's a lot to both of them!

It's hard to give a one-is-better-than-the-other answer.

I suggest you try them, understand that you will have to pay your "dues," learn along the way, and then adapt your model to fit you better as you go along.

Good luck!

Take care,
Chad.

[alexb5784]

Chad,

For me, investing in the stock market is a game, some would even call it gambling. But I enjoy winning and I don't beat myself up when I lose. Mostly I buy and hold for a really long time. I always pick stocks I've been following for a while and in sectors I have strong feelings will bounce back in due time.

As far as real estate in concerned, I'm on track to buying my first home (a loft preferably in Manhattan or in a sweet area of Brooklyn ) but I'm not interested in dealing with rental tenants. I don't see myself purchasing multiple units or buying commercial property. The realities of being a landlord aren't worth it to me. I'd rather invest my money elsewhere.

To Elmebrigge,

When I was interested in real estate years ago, I went through all the rookie books. Most of these books were really bad and told me absolutely nothing about the reality of owning real estate.

Some of these books taught illegal tactics, most of which were responsible for the 2007 housing crash. If you're really interested in real estate, I would avoid anything about flipping houses quick or how to get a home with zero down. In fact, avoid anything with the Rich Dad Poor Dad logo, those books are crap. Yes, they may be motivational but they don't teach you anything.

There's a real estate investor who writes about the real pros and cons of investing. He's also written very good reviews about many of the real estate investing systems on the market. I've bought several of his books and they've been eye openers. Check him out here at John T. Reed's Real Estate Guru Ratings. His books aren't cheap but they're worth the investment. He's also very direct with his reviews.

I hope this information helps.

[just jr]

[QUOTE=Elmebrigge;1015526]I would like to have opinion on the investment decision whether to invest in real estate or go for stock investment.Investment decisions are always tough to take in proper time.Every one wants to invest where there is maximum ROI with
minimum risk.But when you look at the market you can rarely see such a sector which fulfills all the requirements. But real estate presents best possible combination of both requirements.[/QUOTE

Hi,

I consider myself to be a value invester. I invest in stocks that are undervalued by the market. I cant speak for real estate but i am pleased w this style of investing

[GregD]

Originally Posted by Elmebrigge

I would like to have opinion on the investment decision whether to invest in real estate or go for stock investment.Investment decisions are always tough to take in proper time.Every one wants to invest where there is maximum ROI with
minimum risk.But when you look at the market you can rarely see such a sector which fulfills all the requirements. But real estate presents best possible combination of both requirements.

Hi I would recommend the real estate for the simple reason that houses can not disappear. Once you have established a foothold and have decent wealth you can invest in various places to diversify risk. Until then, start with something secure and safe.

Best of luck

[DavidJ]

I'll prefer to invest in real estate sector because in stock market the ratio or profit and loss is equal but in real estate business you'll always get a profitable return on your investment..!!