Stocks or Real Estate? How do I know which is right for me?

>>2204754
i like RE because it hedges against inflation and its a tangible asset in a world of digitization. I know next to nothing about intrabank and but one could assume its vulnerable. A house is a house if the economy collapses you'll have shelter and something people will always need.

I own three rental houses and right now I say stocks. Fed up with tenant shenanigans right now desu senpai

>>2204754
>crypto is investing in NEET memes
>Real Estate is investing in Chinese meme economy
>Stock market is investing in central bank meme easing
It's all memes. Pick your poison.

>>2204754
they're both in a bubble

and now so are shitcoins

fucking fiat

>>2204764
Finding good tenants even with background checks and credit reports is difficult

I always get the ones that look good on paper and seem responsible in person. That is until loser boyfriend/girlfriend/family shows up. Then I end up booting them all and fixing the damage for two weeks

>>2204754

Why not both?

Go with VTI + VNQ


If your portfolio is large enough and you can handle being a landlord only then should you look into a leveraged rental.

>>2204754

RE, because of mortgages.

Try getting a 30-year fixed-rate $200k loan to buy stocks as an average joe. Not gonna happen.

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40KB, 840x240px

>>2204754
There are very few things in this world with tangible value:
Food, water, cunt and real estate

..and drugs I guess

>>2204754
Stocks are easier, so if you just wanted to hold onto a paper for 5 years, and then have your investment increase by 25%then go with stocks. But if you're looking for a long term way to gain large amounts of capital, there are few things that can compete with real estate. Just use a loan to purchase the property, and then rent it out to cover the mortgage. Bonus points if you can live on the property too, since that means your housing is free.

I suggest doing both though. It's hard to break even with real estate when you don't have many units to sell. It won't be something you can live on until you have at least 8 units, and that will cost you probably around million dollars. Put your money that you aren't spending any time soon into stocks, and when the stars align for a particular property; research it well, and then buy it. Just remember that dealing with tenets can be a real pain in the neck, so you won't be earning money with absolutely no work in real estate, as opposed to stocks where you do virtually nothing.

>>2204854
My nigger

I'm VOO and VNQ right now.

>>2204816
Fucking hell this terrifies me. My sister is a pretty successful Princeton grad who couldn't control her pussy urges and dated a violent alcoholic degenerate. Her landlord thought she was great until he and his pals tore the place up.
>>2204854
Interesting, elaborate
>>2204918
I've heard that RE should be short to mid term and stocks are long term

>>2204764
That's one of the biggest benefits of stock.
Because the price threshold is far lower, the market is always liquid, meaning "involvement" in the asset is not just minimal, it's practically non existent. No one ever bitches to you, only to the broker.
Pretty much the only time I talk to mine is when I need to yell at them.

>>2204754
Both are grandpa tier, but real estate is better because it has leverage you can't get margin called on, plus returns can be really good if you are in the right market.

I suggest just starting any service related business and building a reputation and expanding. It's literally free money and the easiest business model.

>>2205148
It depends on how you define "long term." It's better to trade stocks focusing on the long term, and not a short-term investment where you only hold for a couple of days. But real estate is a very non-liquid asset, so buying with the long term in mind is essential.

>>2204816

Yeah it's the hangers-on who seem to cause the shit. Another lot of tenants looked great on paper but we're totally full of shit and basically animals. Our last place is actually great so far (6 months in). Tenants look after it better than we would. They lost their house after renting it to a family member who wrecked it, so understand how things work

>>2204761
guns are a better investment if the economy collapses

why buy a house when you can kill or drive off the inhabitants of one and live there for free in post-apocalyptica?

>>2205148

>Interesting, elaborate

VTI = Vanguard total stock market, an index fund. If you did nothing but average into this over the course of your life you would be just fine, it's diversified.

VNQ = Vanguard real estate index fund. You own a small piece of all publicly traded REITS. You don't get the higher yields or tax benefits of a rental but you don't get the headache either.


Buying rentals can be good because of the leverage available(mortgaging), but it's a double edged sword. If the market pulls back your equity can be wiped out over a few months. http://www.zerohedge.com/news/2016-11-29/us-home-prices-rise-above-july-2006-levels-hit-new-record-high
Better to stay out of it until you only need a small amount of your portfolio as a down payment( IMO, <25%). That way you are still diversified and liquid. It doesn't make sense to put more than the minimum down (usually 20%) because real estate loans cost less than you can make in the market and you would have to give up liquidity.


Figure you can mortgage the property at 4%, yield 7% in the market(over long term, there will be more volatility.), and get 8-12% yield on rentals. Personally I like the idea of using a margin loan against a brokerage account for the down payment on a rental. No cash out of pocket, although it does add more leverage/risk .

Unless you are a real estate pro, contractor, or can add value some other way. Then go with whatever's clever.