Solid Reasons for Investing in Real Estate
If you invest in the stock market, which includes an assortment of equities, bonds, mutual funds and options, you are in for a rocky ride. 2002 will record the third straight year of losses for North America’s stock market indices. Many financial advisors suggest that if investors can not stomach the rapid rises and falls of a stock, they might want to consider investing elsewhere.
Stocks are not for the faint at heart. It takes a great deal of stamina to survive the roller-coaster ups and downs of an investment that is heavily dependent upon economics.
What about real estate? Has it done better than the stock market? Let us take a look at Bill and Marsha, who each have received a $10,000 inheritance. They are not sure where to invest their proceeds.
Conservative Bill invests his $10,000 in the stock market. With interest in the Internet still growing, he puts it into a S&P 500 index fund.
A renter, and inexperienced in the stock market, Marsha uses her $10,000 as a down payment on an $80,000 condominium. Fast forward – 12 years. Who did better on their investment?