Stock Market or Real Estate?

 

 

 

Which investment is best?                                                 

Stock market or real estate?                                       

You inherit $100,000. Should you spend it, save it, or invest it? Going on a shopping spree with that much money is out of the question. You have to       put at least some of your windfall to better use. Hiding it under your mattress won’t make any sense, either. If your hidden stash doesn’t disappear in a burglary or go up in flames, your money will just lie idle there. It might be safe under    your bed, but it won’t grow while you sleep. It’s smarter to invest some of the cash and put it to work.

 

Spend some, invest some                                                                         

 

Spend a little of your inheritance to pay off credit cards or college bills. You could save yourself thousands in interest.  Treat yourself to a nice vacation, or buy something you’ve always wanted, like a boat. You could easily blow it all on a big yacht, so think Pontoon or motor boat, and invest the rest. After you’ve splurged, ask a good financial advisor to recommend the best places to invest your remaining dollars. *

 

Stock market or real estate?                                                                                             

 

You’ve heard the upside of buying property as an investment. It sounds like a great deal:

  • Monthly rental payments to pocket

  • Increased property value over the years

  • A place for a relative to live if hard times hit

What’s the downside of owning property? Do you really want to be a landlord if worse comes to worst? Just a sampling of risks you’ll take, include:

  • Property repairs and improvements get increasingly expensive.

  • Tenants are unable to pay the rent, or damage the place and disappear.

  • Fix-this or paint-that requests will eat up a lot of your extra time.

  • The eviction process is ugly and slow, often going on for months with no rent.

  • Recession or housing deflation lower your property’s value rather than increase it.

If property ownership drawbacks seem daunting, take a look at investing in REITs, or Real Estate Investment Trusts. REITs, which sell on the stock market, are investments in corporations that own, develop and manage properties. Those companies do all the work for you and let you share in profits.

 

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Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC                           Follow our blog: aamllc.com                  * Ronald Van Surksum, CFP                  4555 Wilson Ave SW – Suite 2               Grandville, MI 49418

rvansurksum@aamllc.com                 Phone: (616) 531-5220                            Cell: (616) 450-8439

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