Real Estate

Real Estate vs Investing is such a faulty comparison...

  • Last Updated:
  • Jun 21st, 2016 4:39 pm
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[OP]
Penalty Box
Apr 16, 2012
3565 posts
687 upvotes
Greely

Real Estate vs Investing is such a faulty comparison...

If you are waiting for a real estate crash in the next X years, then your money would be in a savings account, not invested in stocks.


If you are invested in stocks/index funds, then you have no business buying real estate because that money is supposedly for the long term.



So that comparison basically achieves nothing as there is nothing to compare.


What I mean is this: Say you have $100,000...should you buy a house or buy stocks? No, that's a stupid question because if you buy stocks and real estate crashes, your stock portfolio would crash and you have no business cashing it out to buy a house because you would be selling at the bottom. This goes against every single investor's rule of thumb as well.


So if you buy stocks, it is irrelevant how well or poorly real estate does because that money remains in stocks and has no business in real estate.
6 replies
Deal Expert
User avatar
Nov 15, 2004
19597 posts
3596 upvotes
Toronto
You know you can short stocks and make money in a falling market, right? You can also change the risk profile of your investments literally overnight if you're worried about a market drop.
Banned
Aug 3, 2005
1235 posts
1166 upvotes
Piro21 wrote: You know you can short stocks and make money in a falling market, right? You can also change the risk profile of your investments literally overnight if you're worried about a market drop.
lol this.

OP is a retard.

"if you buy stocks and real estate crashes, your stock portfolio would crash "

Might throw this in my signature.
Temp. Banned
Aug 7, 2011
6623 posts
991 upvotes
Vaughan
Yay, another one of these.
Deal Expert
User avatar
Jul 30, 2007
29176 posts
14926 upvotes
Toronto
what about a 3rd choice ?

Vegas :)

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