stock market and real estate investment

I am often asked about the stock market and real estate investment, which is a better investment. Both provide growth and revenue. Real estate investment has its advantages, the stock market also has advantages.

In addition to often touted the fact that real estate investment has an advantage because "they do not do anything", many people in the past have the feeling of being more comfortable in real estate because it is tangible. The stock market is not. Real estate investment has traditionally taken the form of buying real estate, renting houses and handling repairs and tenants. The need for active management and the immobility of immovable property (easy to sell quickly, without the huge expense) is a fact of its flaws.

On the other hand real estate investment has traditionally had a huge advantage called financial leverage. Do a small investment at their own expense, borrow a lot of money to buy a property is how many people in the past rich. After all, if your investment value increases by $ 50,000 or $ 100,000, your rate of return depends on how much you actually invest. Since the early 1930s, ordinary people have not been allowed to use heavy financial leverage in the stock market

Since the recent financial crisis threatened the world economy, financial leverage is now a dirty discourse. Rules have changed, but there are still opportunities for ordinary investors. Forget the past, forget to compare the stock market and real estate investment in conventional terms. In comparing these two traditions, there is no point in buying real estate as if it were a company. The average staff member does not usually go there because they have other obligations and obligations to participate in

In the stock market, you are only buying and selling. This is the advantage: mobility, there is no active management. Today, you can trade $ 10. You can invest in any stock you like and buy and sell in your brokerage account via the Internet. If you want to get into the real estate investment in a simple way, even in the budget, you can do it in the STOCK market.

Equity Real Estate Investment Trusts (REITS) Investment (REIT) Investment Trusts (REITS) Investment funds in apartment buildings, shopping centers, office buildings and so on … diversified across the country. They have been stable for a long time and have performed over the years, providing investors with growth and higher than average dividend income. Their shares are traded on the stock market. When the real estate becomes cheap, these stocks. Two big names: Simon Property Group and Vornado Realty Trust. Then there are some new things

In order to get the best of both worlds real estate investment and stock market … no need to choose which stocks to consider an ETF investment in a large number of stocks like the two mentioned above. Stock Code IYR and VNQ are two such ETFs

You can invest from a few hundred dollars to millions of dollars, enter or exit in seconds, and simply buy the right stocks to become real estate investments By. With today's unpredictable economic environment and market, a basic truth has become apparent, even among the most casual observers. All markets, and even the real estate market, are dynamic and may change. Why not put liquidity on your side?