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Jul
What are the pro’s and con’s of Real Estate investments vs Stock’s?
Posted by: admin / Category: real estate investmentsOn a cash basis. Real estate could take any form (residential, commercial, vacation, apartments, reits, developments, etc). Stocks could be (individual, index). Maybe even vs Bonds of all types.
Or private businesses, they could be original or even franchised. Maybe both Real estate franchise ie Marriot.
Real estate is less liquid and transaction costs are more.
Stocks are are more volatile and risky.
Real estate usually does well in times of high inflation. Stocks generally dont.
July 29th, 2010 at 1:15 pm
Assuming no leverage,
stocks and reits pay dividends, but buildings by themselves do not unless rented out.
Stocks have no carrying cost, except the opportunity cost of foregone interest, while buildings require frequent upkeep and repairs.
Financial investments have very low liquidity risk. That is, you know the price of the asset at all times, an can usually sell at that price for less than 10 bucks commission. Buildings, on th eother hand, are the most illiquid investment out there, and can sit for months or years without a sale, at an unknown price, with a huge commission and other transaction costs.
References :
July 29th, 2010 at 2:05 pm
Real estate is less liquid and transaction costs are more.
Stocks are are more volatile and risky.
Real estate usually does well in times of high inflation. Stocks generally dont.
References :