better investment now - stocks or house?

[jred321]

since both markets are well down now and buyer's markets which is the better buy? does it make more sense to buy a house if you can get approved for a mortgage or is it better to buy stocks while they're low? i know the right answer is probably to keep a diverse portfolio so it would be a little of each but that's boring

 

[Mid_Life_Crisis]

since both markets are well down now and buyer's markets which is the better buy? does it make more sense to buy a house if you can get approved for a mortgage or is it better to buy stocks while they're low? i know the right answer is probably to keep a diverse portfolio so it would be a little of each but that's boring

I think the real question here is, "do you want to be a homeowner?"
If you can afford all the costs that go with a house, they are usually a good investment over the long term. If you don't have a house to get rid of now is a great time to buy your first one. If you buy one from the inventory of a new home builder they are so desperate that you can get all sorts of extras as incentive to buy now, so you will be able to get more home than you may have thought possible. Just don't over reach and end up with more home than you can afford to maintain.
If you don't want the hassle of homeownership (it can be a headache - if you rent and have a problem you just call the landlord and it is his headache - and expense) buy stocks and bonds.

 

[genericuser]

I prefer real estate over renting, personally. Yes you are responsible for maintenance costs. That is a given. At least you can get some of your dough back when you sell a house.

 

[jred321]

the thread is really which market is lower relative to where it should be and will therefore create a higher gain: stocks or houses? not another rent vs buy thread.

my boss is currently looking to buy a foreclosed home. when it was originally listed it was in the $550k range. they keep repricing and are now down in the $350k range. another friend of a friend bought a house a not too long ago (<5 years) for $280k. she now has it listed at $170k and can't sell it.

on the other hand many stocks that are largely uninvolved with the current credit garbage have taken a nose dive. so there should be a number of safe investments out there that if you buy and hold on to for 5+ years should net a decent return.

so what is better to put your money into now?

 

[SuperStretch18]

I'd say stocks will probably offer a better return, but are more risky.

It is going to take a looooonnnggg time for the housing market to reach the point where it was two years ago. Stocks in general should recover relatively quickly. However, you don't have to worry about your house taking a dump and losing ALL of it's value...

What does that make my vote?

 

[genericuser]

My vote is still real estate. It isn't going to sink much lower. Plus you can't live under stock certificates.

Both markets are bottoming out, and both offer a great investment opportunity. However, you get to live in the house now (immediate payoff) and you'll hopefully get to sell it for a profit later (future payoff).

 

[tiagotiago]

I voted for stocks but it all depends. If you have an investment portfolio that has stocks and other instruments, you have a potentially good return with a moderate risk involved. If you have the character and time, buying a place and renting it, or building something very useful (like a garage complex at just the right place) could yield a very nice amount of money.

But it's all about risk, the more risk you're willing to run, the more you might be able to get in return.

 

[Afroman]

There is only so much land and so many houses. If you pick your location wisely and care for your home, returns in a period of 10-15 years are definately possible.

Not to mention rent = spending money and getting nothing back. Atleast with a mortgage payment you are putting money into equity. Even in the early years when a majority of your payment is interest you can claim that interest on your taxes.

Home ownership has loads of benifits. Choose a home wisely and you will be making a very wise investment.

 

[FritzTCoyote]

Canned Food and Ammunition!

 

[Kain]

Canned Food and Ammunition!

That's where the world is headed. Good thing I still have my Cold War-era bomb shelter. Nothing says survival like Spam and a transistor radio!