You could even be a day trader. You could invest in single-family houses and condos scattered across different zip codes for rental income. Unknown to the drawbacks associated with the real estate business, such persons invest a lot of money in the real estate to make profit end up with major economic loss. Land can be said to be somewhat future-proof. When my investments in land are taken into account, investments which I bought on value, rather than market price, my portfolio is almost more than 75% real estate……..this means tossing spare money into diversified stocks is more than balanced out by my real estate investments. In real estate, there is comparable variety. You could be a sole owner; you could be part of an ownership group. So, in my point of view newbies should conduct a lot of research prior to the investment in real estate to ensure steady cash flow. Consider a 700 dollar a month rent, you get no equity whatsoever, and loose 700 a month. What you need to do is find the investment style that suits your temperament, your tolerance of risk, and of course your available capital. There is a reason the Talmud suggests placing your money into business and land, and a third in cash at hand(which could be used to exploit price drops), the reason is land is a solid asset that can be an insulated asset that provides a reduction in day to day living costs as well as stable passive income. You could invest in multi-family properties, which represent a more substantial investment in a single zip code. “A gold block does nothing but look shiny, why own gold when I could own stocks and land”(Warren Buffet) Even if robots could dig up gold, and build things for almost no cost, one thing I can never do is program or instruct a robot to make more land. All spare money placed into stocks(and maybe a small portion of bonds) has high chance to grow, while still being diversified in your total portfolio. Rent slavery will sap and destroy most of the wealth you could generate, as well as the money that one could spend. I passively invested in real estate through a real estate investment company which is a stress-free and relatively stable way of investment.

Caitlyn Lansberg October 12, 2018 at 5:57 amInvestment in real estate business is subjected to a lot of factors which needs to be properly considered prior to any kinds of investment to avoid the major financial blow. (Serious investors LOVE volatility because they can take advantage of what they regard as mispriced stocks.) You can pick your own stocks; you can invest in baskets of stocks called ETF’s; or you can hire a money manager to invest on your behalf. In stocks, you could be an essentially passive investor living on (or compounding) dividends from slow-growing blue chips. Land is a limited commodity, and therefore as the population rises, and land is used up, will appreciate in value. My financial planner has most of my money in stocks and index funds, despite my low risk tolerance…..why few bonds?? Because my savings account and credit is almost entirely committed to home ownership and land-lording. There is a lot of way including the active and passive way by which one could invest in real estate. Lastly land has a low correlation to stocks and bonds, meaning they can be essential in my eyes as a way to diversify my stocks investment. Unknown to the drawbacks associated with the real estate business, such persons invest a lot of money in the real estate to make profit end up with major economic loss. (The price of a stock is primarily determined by its anticipated return, and if those returns fall short of what you could get in real estate, the share price is inevitably going to fall.) Also, it’s misleading to speak of “stocks” and “real estate” as though they were homogenous globs. You could have a management company handle the details for you, or you could drive around collecting everybody’s rent yourself. People often think real estate market is stable unlike stock or mutual fund. You could be a more active investor looking for anticipated capital gains. As a stock investor, I am very glad that (some) people make tons of money in real estate, because that keeps stock prices competitive and allows me to find good values. It doesn’t really matter whether it’s stocks or real estate (or bonds or alternate assets–although I really can’t recommend bonds right now …). Reply

At the end of the day, the stock market and the real estate market have to provide comparable returns because they compete with each other for investors’ dollars. I would not accumulate too many properties because managing each one takes time, insurance, and effort. I passively invested in real estate through a real estate investment company which is a stress-free and relatively stable way of investment. Investment in real estate business is subjected to a lot of factors which needs to be properly considered prior to any kinds of investment to avoid the major financial blow. There is a lot of way including the active and passive way by which one could invest in real estate. If it works for you, it’s great.

Honestly there are several reasons I have a strong preference for real estate Sam, the biggest is its ability to lower one’s overhead and add passive income. The second reason is that real estate is really something for a value investor, people need land, and even if labor gets automated by robots, wars happen, and inflation skyrockets people still need to have land to operate a home or business. So, in my point of view newbies should conduct a lot of research prior to the investment in real estate to ensure steady cash flow. There is a reason businesses spend millions trying to lower their waste and overhead. People often think real estate market is stable unlike stock or mutual fund. When you pay a mortgage, especially if you can pay it off fast with every penny you make, you will eventually save 700 dollars a month, and a penny saved is a penny earned. There are many different ways to invest in either one. And of course there’s commercial real estate–everything ranging from a corner bodega to an office building. In short if you are young get one piece of real estate as soon as possible: a home, then maybe duplex it or acquire another cheaper house to rent out for passive income.