Investing: Real Estates vs. Stocks

Real estates versus stocks - investing money

You’re not an investor, if you’re not investing. And for the most of us, this means either real estates or entering the stock market. Both have their place and it depends on the amount of money you’re willing to invest and on your personality.

The “Wannabe-bomb-proof-investor”:

He invests in real estates, cause it creates this “Save-Feeling” of always having the opportunity that you can live in there on your own.

The truth:

  • You can only live in one real estate at a time.
  • You have to find a tenant – which costs money
  • There are often tenants, which don’t want to pay
  • You have to invest money in maintenance
  • You have to invest money in administration
  • And – most of the time – you have a debt for this real estate
  • Plus, if the crash is coming, your real estates are also worth nothing, cause most of the time your tenants can not pay.

So who should invst in real estates then?

Well, guys with big balls, in big citys with big bank accounts 🙂

Now to the “Start-small-grow-big-guy”:

He invests in stocks, etf’s and bonds. Seems risky, cause we all heard this rumour that you can loose everything in the stock market.

But the truth is:

  • If you stay away from options, cfd’s and levers, you can not loose more than what you have invested.
  • You only have to invest, what you invest. There is no other expense coming.
  • You can “get and forget”. In fact, this is the way to go, since long time share holders mostly get the same return on investments than gamblers.
  • You don’t have a debt for this investment.
  • You can choose for every month of the year individually, what you want to invest.
  • And – if you need the money – you have it faster, with less taxes, than on selling one of your real estates.
  • Plus, if the crash is coming, your stocks are worth nothing, cause most of the time the companys can not pay.

So who should invest in stocks?

Well, everyone.

Verdict:

Either way: You can loose all of your money.

Wich way would you choose? And why?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s