Comments on: Stocks versus Real Estate Investments

By: Matt Andrews

Matt Andrews — Thu, 17 May 2012 12:35:00 +0000

Great ideas. Thanks for the info. If you want to see what we are doing with high cashflow rentals in Tampa, FL., check us out at http://www.ZMAinvestments.com . We are the number one source for wholesale properties in Tampa. Hope to hear from you soon!

By: Investment

Investment — Thu, 17 May 2012 09:10:00 +0000

Stocks should generate higher return that property in long term if calculate depretiation and all other costs…

By: rene

rene — Thu, 17 May 2012 13:18:00 +0000

these people who says that real estate are better than stocks are either real estate brokers themselves or just plain no know-how investors. stocks requires small capital, very liquid and you can have maximum gains in shorter time. real estate is so much work and headache. if one does his homework well, its objectively clear that real estate is only second good to stocks.

By: cyprus

cyprus — Thu, 17 May 2012 09:53:00 +0000

me too..predicting sometimes does the trick here..

By: larnarca

larnarca — Thu, 17 May 2012 07:34:00 +0000

i agree with INVESTING & PASSIVE INCOME..weird name though..the real trick is to predict which comes next..

By: Properties Costa Rica Guy

Properties Costa Rica Guy — Thu, 17 May 2012 12:47:00 +0000

I don’t agree with Costa Rica Real Estate Guy. Real Estate is very often a good investment, but if you don’t do your homework you certainly can pick also a bad piece or a bad deal.

By: Investing & Passive Income

Investing & Passive Income — Thu, 17 May 2012 02:07:00 +0000

everything moves in cycles.

the tirck is to predict which cycle is next.

By: Anti Real Estate Schemes

Anti Real Estate Schemes — Thu, 17 May 2012 11:47:00 +0000

Where do I even begin? First, I’ll address Michael: Sure you can get rent if you don’t live in the real estate but, let’s tell everybody the FULL story: Annual Insurance (>1%), Property Taxes (in NJ 3-5% annually), and the Fed Government says depreciation will run about 3% (BTW this is not just a rightoff but actual landlord costs or it’s defered maintenance and that will affect your appraisal). Since lately real estate speculators have been buying at 7% Cap rates or less then your rents are more than wiped out! Finally has anyone ever heard about Stock dividends (well, in real estate speak it’s stock rent you don’t pay insurance, property taxes, and they don’t depreciate. Furthermore they are subject to special tax rates. BTW, they can be automatically reinvested while I sleep, rent can’t be!

Now, for Gina. Women like safety and stocks can fluctuate less than Real Estate yet be less SAFE! What do I mean? Sounds crazy? If my stock drops 10% and my home drops 10% in 2007 I can still sell my stock in 10 seconds for $7 transaction fee. My neighbors have had to wait 6 months while they’ve been moved elsewhere. If they can’t cover the mortgage they may default. Sounds very risky to me and the Real estate agent still wants their 6% which is a lot more than my $7 trade fee!
Marty, don’t make me roll in on you now! That term means I’m in the military and know a little about VA loans. Let’s look at your $50,000 profit on say a $300,000 home. The real up side is $50,000 – $9,000 (3% Va funding Fee is total loss) – $18,000 (6% realtor charge) = $23,000 profit (I didn’t even consider seller paying part of closing costs!) vs. your example $50,000 loss – $9000 (VA fee) – $15,000 (Realtor, you pay less when you sell for less) = $74,000. Real estate doesn’t sound so great when your LEVERAGED upside is 3X you LEVERAGE downside. Leverage is bear in a down market, especially in real estate. BTW, I had to own that leverage 6 – 18 months longer than I needed to!

By: Costa Rica Real Estate Guy

Costa Rica Real Estate Guy — Thu, 17 May 2012 18:51:00 +0000

As others have stated, real estate is a safer more certain investment method, you really can’t pick a bad piece of property, they all go up over time (certainly over a 20 year span). You just can’t say the same thing about stocks. Sure if you pick the right one you will be doing great, but if you pick the wrong one(s), you can loose your money in a hurry. Nothing retains it’s value like real estate, even in an down market.

By: Lord

Lord — Thu, 17 May 2012 14:55:00 +0000

Averages never make for good comparisons unless you are investing in averages. How much easier is it to select better than average real estate versus better than average stock? I suggest not investing in average real estate.