Comments on: Real Estate versus Stock Market http://www.myrealtysource.com/business-finance/real-estate-stock-market/ Innovative real estate service providing for Tampa Bay, Ft. Myers, and Cape Coral Mon, 28 Nov 2011 17:49:26 +0000 hourly 1 http://wordpress.org/?v=3.3 By: admin http://www.myrealtysource.com/business-finance/real-estate-stock-market/comment-page-1/#comment-590 admin Thu, 16 Dec 2010 12:42:12 +0000 http://www.myrealtysource.com/?p=152#comment-590 Jeff- You are right. There are a ton of things, far too many to discuss on why stocks could be better as well in certain times. For instance when the housing market crashed, let's say you own a home for $250k cash and $250k worth B of A stock. At least you can pull out of B of A, whereas you could not get rid of your house unless someone bought it from you. Real Estate loss is somewhat uncontrollable where stock losses can be. What do you think about it right now during these times? I just had a client buy a 2 family home, generating 10,500 NOI from a $75k purchase price. Take out speculation. Include a 20% additional loss in value, while generating the same income. Hold the real estate for 5-7 years. Nobody was generating that type of NOI in the past or Capitalization Rate. Or you can invest with a small cap equity broker and make 10% +/-. If the cash flow is even, I'll take the real estate right now with the tax advantages. I do own stock though :-) Thanks for your comment. You make a really good point. Jeff-
You are right. There are a ton of things, far too many to discuss on why stocks could be better as well in certain times. For instance when the housing market crashed, let’s say you own a home for $250k cash and $250k worth B of A stock. At least you can pull out of B of A, whereas you could not get rid of your house unless someone bought it from you. Real Estate loss is somewhat uncontrollable where stock losses can be.

What do you think about it right now during these times? I just had a client buy a 2 family home, generating 10,500 NOI from a $75k purchase price. Take out speculation. Include a 20% additional loss in value, while generating the same income. Hold the real estate for 5-7 years. Nobody was generating that type of NOI in the past or Capitalization Rate. Or you can invest with a small cap equity broker and make 10% +/-. If the cash flow is even, I’ll take the real estate right now with the tax advantages.

I do own stock though :-) Thanks for your comment. You make a really good point.

]]> By: Jeff W http://www.myrealtysource.com/business-finance/real-estate-stock-market/comment-page-1/#comment-588 Jeff W Thu, 16 Dec 2010 05:44:35 +0000 http://www.myrealtysource.com/?p=152#comment-588 Lets be honest. You are totally not telling the whole story here. You really need to use a different comparison. Like one that applies. If you are going to discuss Real Estate Vs the Stock Market make sure that at least you compare apples to apples and not apples to oranges. OF COURSE leverage is going to give you better returns if you are on the winning side. It'll ALSO exasperate your NEGATIVE returns TOO. Do you know that you can purchase LEVERAGED positions in the stock market as well? Why do you not use that as your comparison? I see people claiming 50% annual returns for different strategies. They are no worse then someone that presents information in the manner that you have. Lets be honest. You are totally not telling the whole story here. You really need to use a different comparison. Like one that applies. If you are going to discuss Real Estate Vs the Stock Market make sure that at least you compare apples to apples and not apples to oranges. OF COURSE leverage is going to give you better returns if you are on the winning side. It’ll ALSO exasperate your NEGATIVE returns TOO.

Do you know that you can purchase LEVERAGED positions in the stock market as well? Why do you not use that as your comparison? I see people claiming 50% annual returns for different strategies. They are no worse then someone that presents information in the manner that you have.

]]> By: Jagger@emini trading http://www.myrealtysource.com/business-finance/real-estate-stock-market/comment-page-1/#comment-16 Jagger@emini trading Wed, 17 Jun 2009 23:22:44 +0000 http://www.myrealtysource.com/?p=152#comment-16 You are correct in saying there is nothing equal about the equity markets and real estate markets. By and large, I believe more money has been made in the real estate markets over the last 80 years an there is no comparison. I think it just boils down to personality and individual risk tolerance. I trade primarily the index futures markets but I know people that wouldn't even consider trading these volatile markets. Long term investing in the stock markets is their approach and would only consider using a swing trading methodology for short term profits, if even this. It all depends on what the individuals time horizons are for return on investment. Short term = the equity markets long term = the real estate markets. Just my view and thanks for letting me share. You are correct in saying there is nothing equal about the equity markets and real estate markets. By and large, I believe more money has been made in the real estate markets over the last 80 years an there is no comparison. I think it just boils down to personality and individual risk tolerance.

I trade primarily the index futures markets but I know people that wouldn’t even consider trading these volatile markets. Long term investing in the stock markets is their approach and would only consider using a swing trading methodology for short term profits, if even this. It all depends on what the individuals time horizons are for return on investment. Short term = the equity markets long term = the real estate markets. Just my view and thanks for letting me share.

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