Is My Money Better In Real Estate Than The Stock Market?

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[aaronwhite]

The caller is absolutely right when he says the value of stocks is completely irrelevant to the company's earnings. A lot of overpriced equities.

[NurseMoneyGrowWealth]

Mutual fund - passive income
Real estate - active income

Would do both

[NicholasBall]

Buying a home is challenging, especially if you're not paying in cash or avoiding a government loan. Even with just the minimum monthly payments on a 30-year mortgage, I’ll end up paying more than twice the value of my home. I was fortunate to buy before the market went wild, so I secured a good interest rate. I can't imagine trying to rent or buy in the current conditions.

[dbdb]

Very true. People think real estate investments are a breeze, and it's not, it's a hustle

[John-zhud]

Risk is ultimately is what drives return. With real estate you risk getting a 3am call that the basement is 6 feet underwater and you need to pay someone to fix it.

[sarajanewebster]

Real estate is tricky, and not for the faint of heart. I know two couples who put their money into real estate and are now trying to cash out; it’s not simple. They’ve both had to lower prices and in the meantime are cash poor because all their equity is waiting for a buyer.

[lmk]

Disagree. House prices have gone up in the last few years. But. That is not how it's worked for a long time. Owned homes since 80s, including rentals. My rate of return in stock market far exceeds any return from real estate.

[levioneill]

I've never had a ceiling collapse at 2am on a stock. Both are good to have but one takes allot of extra time and money.

[ShelleySorenson]

Real estate sounds good until you get a renter that absolutely trashes your house that you just remodeled.

[eric_andrews]

With 7% interest rate mortgage you pay the value of the house nearly 3 times over 30 years + property tax + insurance + maintenance, so your house better be worth at least 3x more than you bought it for + then some. In many cases in the current environment (high home values, high mortgage rates), makes more mathematical sense to rent and invest the difference in long term index funds. Do the calculation on the 20-30 years compounding, stocks almost always outperform (in these real estate conditions which are highly unfavorable, unfortunately). That said real estate is very situational so certain deals can outperform if you have an edge. Good luck!

[peterr]

Real estate also requires a lot of cash on hand for maintenance, etc.

[verycautiouspersona]

I am 28 years old and lost my dad about half a year ago and I am going to receive some money soon. Would it be smart to grow my money in stocks for a few years while I am in college and then invest in rental properties afterwards, or should I go for real estate investing first?

[soniarosen]

All my money is invested in the stock market! I been in for 20 years and I get a rate of return of 16% after 12% overall! during the 2009 yearly I sold every stock and put all on money market account until every thing neutralize and I started buying high end stocks because were cheaper at the time and could not afford before, now I have all this stocks that I get good dividend at the end of the year in one lump sum. I have look in every way how to get more money out it but I have try it on paper and nothing pay as much as I 'm getting ! if I could leave my dividends in I would had lots of money but I needed to pay house taxes, car insurance, house insurance, health insurance.and still my stocks are worth more then when I started and I'm not changing anything!

[thomascameron]

THE PRICE IS ALWAYS BUILT IN! You have to think 3 years in advance, this is the Information Age, value is derived from unrealized profits from current or former investments. Say a company is worth $100k but given its long term investments, it will be worth $500k in 5 years. Then the stock will trade at 5x its fair value and bet on the company making more future investments.

[JacobSmith-sgwt]

I’ve noticed what he said about stock market too. Stocks will move and fluctuate heavy even with no news or change in the business.

[simonacland]

Yeah I figured that would be it.. I'm just happy I can eat and enjoy the simple things.

[vegasstrong]

One of the most true statement in a long time, lot of "sentimental" Value in the market today

[binaryvat]

Looking for a direct relationship between earnings and stock price, is like trying to play classical music with only one note. Another one: mutual funds are stealing your money and never beat the S&P. Buffet advice: Just buy the S&P and enjoy 13% average annual return, and enjoy your free time.

[steves]

I always buy crap people need. I bought a crap load of Wal-Mart stock when it split 3 ways. I have had a 53 percent return since July. My portfolio is up 253 percent (I bought low during the small pandemic crash). The rate of return has been so good that i am able to cash some out every quarter if i want.

[oneperson]

If you dont have a years worth of food stored in your home where you can access it, thats where you begin investing. Water supply and filtration/purification methods, too. Times almost up. You cant eat money. Get to it.