Would invest your money in stock, certificate of deposit, or real estate?

United States
July 25, 2009 12:59pm CST
I would rather invest in real estate if I where you. When you are in stocks, you always pray that the price of the stock goes up and you loss all your own money. In real estate you know that the population is increasing and they need somewhere to live. In that time you come in and let them know that your offering rentals. From those rent you would pay your lender the money you borrow. Simple! You might even get an extra income from this. Maybe $50 or more. Real estate has been increasing an average of 5% per year. This means your house will be worth more when you sell it. But I would advice you to invest in long term to take advantage of this 5% increase. So where would you invest your money?
3 people like this
10 responses
@Wismay (2038)
• India
25 Jul 09
I would say it depends on individual expertise and choice. Bonds and Stocks need different expertise and Real Estate needs different skill sets. There is no guarantee for any investment. If real estate would have been increasing 5% per year at average rate then all would be using it as a tool for investing and getting rich. If you ask someone who is into stocks he will say the same that stock prices are increasing at an average rate every year. Now recession is there so most kind of investment vehicles are in trouble. If there was any single formula everyone would have been Warren Buffett or Donald Trump. One is mainly into stocks and another mainly into real estate. How can one is better than other? They are examples for each fields to indicate that one can excel in investing no matter what the field but only if he understands what he or she is doing. So one is not better than other, success depends on Investor and his knowledge and his ways of managing his investments! Happy Mylotting!
• United States
25 Jul 09
This is well said. Although there are times I thought about getting into real estate investment; I never persue it. I do the Stocks and Bonds and have been for years. Yes, the market goes up and down, but I am in for the long haul. Lost stocks many times but I have also tripled my initial money investment, good for me before the recession I cashed a partial out.
• United States
25 Jul 09
Did you lost your money in 2002 on stocks. One of the biggest stock market crash in the world.
@Wismay (2038)
• India
26 Jul 09
No actually that crash gave an opportunity to make more money!
• India
25 Jul 09
I am a risk averse person i.e. I don't have any problems in taking risks but the necessary condition for taking any risk is it should be coupled with higher expected returns. The certificate of deposit is a risk free asset with a lower expected return. Given the present day markets, specially its volatility, it is unwise to invest in stock market but one can obviously do some intra day trading or try options and futures trading. Coming to the third option, the present prices of real estate is already sky high, and from this stage it is going to fall, hence investment is not profitable. So given these three possibilities, I would prefer to invest in certificates of deposit.
@agv0419 (3029)
• Philippines
25 Jul 09
If you have knowledge in stock market it is okay to invest your money there but you don't know anything about it I think it is not for you. You can invest in real estate or in bonds. I agree that purchasing a land or house is a good investment because real estates prices goes up. In banks the interest now a days is very low because they said that it is crisis today. We need to ensure that the banks that we going to put our savings is can insured the money.
• United States
25 Jul 09
Thanks!
• Philippines
26 Jul 09
[b][/b]As I read all the responses here, everybody had good points, because I don't know anything about stocks, I might as well invest in real estate. As one mylotter said, land is always there, you have the option whether you want to sell or to lease it,when you find a good selling price.
• United States
29 Jul 09
Thanks!
@faisai (1140)
• Hong Kong
26 Jul 09
Investing in the stock market allows a higher gain percentage in a short period of time. With the same capital, it can double easily in stock market but not so in real estates. Of course, you can buy a flat based on mortgages but that is equally doable of using margin to buy stocks (which of course is extremely risky). My preference is to invest small in the stock market and put a larger one on real estates to balance out the risks.
• United States
26 Jul 09
Good! Thanks!
@busky5 (3166)
• Thailand
26 Jul 09
I think who like to invest in The real estate, don't like the risk but the real estate are not liquidity.For me,i like to buy the stocks to chance in the gain benefits and dividence.Although the stocks have high risk.I like to buy bonds for spreading risk and good dividence more than Deposit banks.
• United States
26 Jul 09
Good point my friend!
@Celanith (2334)
• United States
26 Jul 09
Investing in real estate is more practical in that the land is always there, even if the buildings burn down or deteriorate the land always has value. You can grow things on it, raise animals if on farm or ranch, grow crops, trees, build on it, rent it out, fix it up, it does not go away. It may increase or decrease somewhat but it is solid and there for use. Stocks are not, they are risky and not always safe or reasonable or practical. They can be lost, they are on paper or just figures not real. As long as they pay they might be good but when things crash, people who invested can lose everything except the land. If the land is paid for and used it can make you money even when the stock market crashes. You can grow things to sell on it and have something to show for your effort and time. It is something to hang on to and build on. Liquid assets are nice but the fact they are liquid means they can diappear as well.
• United States
26 Jul 09
Well informed my friend!
@iwrite (5041)
• Singapore
26 Jul 09
I am not expert, however I think the real estate prices are the lowest for many year, and I view it as the best time to go in provided you have the money.
• India
26 Jul 09
I will suggest you that if you are having throgh knowledge with market companies.Then you can invest money in share bazaar with views of market analysist.This quarter is good to invest money.You can earn a little with up and down market.Most of the time is market is like bull.
• China
26 Jul 09
I invest my money in stock and the real estate. If I could earn more money,I would buy more real estate.As it would earned at last.
@nuar_y (279)
• Malaysia
26 Jul 09
its all based on your decision and knowledge. Not everyone making loss in stocks, and not everyone making profit in it either. So, practically, it is based on your knowledge on something that you want to invest in. So if you have a good knowledge in real estate, then for sure you'll gonna make more profit sooner or later. =)