Stocks vs Real Estate

[Anonymous No.15907114]

stocks vs real estate. Who is better, more profitable and why?

[Anonymous No.15907169]

>>15907114
I'll bite op give me a minute and I will try make a quality post if you want. Give me a sign.(reply) you are here

[Anonymous No.15907181]

>>15907114
right now, gold

[Anonymous No.15907192]

>>15907114
Real estate is like a stock that pays an 8% dividend (conservative estimate) that you can buy on 4:1 fixed rate low interest margin that cant be margin called

[Anonymous No.15907222]

>>15907114
Real estate is far superior but isn’t a passive. End of thread. Thanks for coming out.

[Anonymous No.15907292]

>>15907114
I AM BY NO MEANS AN EXPERT.
Both take time and are not passive income. Both can have extreme risks.
>housing
Tenants can be a cunt. And you should understand your areas tenant vs landlord rights. It can be extremely hard to evict non-paying tenants in some areas it can take up to 6 months. People who get evicted might break things and getting money off someone who has none is hard. So suing and actually getting paid will be hard. You will need to vet tenants hard. And probably hire a property manager to do it for you for a bit when you start. So you don't get burnt.

I believe we are nearing the top of the market price on most houses so taking out a loan seems unwise. As you will pay EG 500k and then prices go down as noone can afford houses(in a crash for example).Google things like rent control. I don't think most places have it but still. Understand your rights.

THERE ARE ALSO PROPERTY TAXES among other things which make the profit margin slimmer.

Some youtube channels I found interesting and may be helpful.
https://www.youtube.com/channel/UCUvvj5lwue7PspotMDjk5UA
https://www.youtube.com/channel/UCV6KDgJskWaEckne5aPA0aQ

>STOCKS
Stocks are complicated because most people don't have enough money. It multiplies wealth not creates it.

>Ie
7% return annually is considered good and takes a lot of effort and you can still lose it all. But 7% of 10k is only 700 a year.

CLEARLY NOT WORTH THE TIME. And you can still lose it all. But with enough money it can be worth it.
Try this series if you are interested. There are 20 of them. Martin Shkrelli used to work in a hedge fund(picking stocks i assume) and is rich.
https://www.youtube.com/watch?v=VI_riscmviI
>Read
The intelligent investor
It is not passive and takes a lot of time and reading not worth it for most people. Let alone the fact most people don't have enough. (100k is not enough).

I hope that helped anyone here I am still learning myself.

[Anonymous No.15907323]

Over the long term, I think real estate will be most profitable. My reasoning is this:

Real estate is limited, and with increasing populations, there will always be demand for it. And not only that but people are naturally clustering together into population centers, increasing demand for real estate in cities even more than the raw population growth would suggest.

Stocks, however, depends on the profitability of the underlying companies, which is more uncertain. You may think that as the population grows, companies become more profitable as well, as demand for goods and services rise. But not necessarily so, because with economies of scale and progress of technology, the products become cheaper and more accessible as well. I think at some point we might reach diminishing returns, where goods and energy are so plentiful that the supply outstrips demand no matter how low the prices go, which would make it very hard for companies to make money selling those products, and stock prices stagnate.

[Anonymous No.15907329]

>buys REITs
>gets benefit of both

[Anonymous No.15907429]

>>15907114
Real estate. You can make 50% returns a year.

Buy a $300k house where yield is 10%, put down 20% deposit, make back the $60k down payment within 2 years, buy another house... Repeat.

Stocks are maybe 15% a year (on a very good year) and are, in general, just as dependent on the economy as rental yields and property value.

Obviously the more leveraged you are in real estate the more risk. You can reduce the risk by increasing the downpayment, but then returns are less.

When you get large enough though (own 20 houses+), you dont even need a downpayment for a house and the bank will loan you the full amount of the house. a.k.a infinity% leverage. the only risk is possible liquidation if the market tanks. The other option to reduce risk is start something like a coffee company and franchise it out; Benefit being that business rents are in general higher than just living rents and (if the franchisee is profitable, you also get a cut of their profits) - This is similar to what mcdonalds does.

[Anonymous No.15907460]

Real estate us more profitable, but can also be a lot of work