Which suits me the most, property or the stock market
Feb 8th, 2010 by ifydcat
The real estate market is often seen as a save haven for investors. Where the stock market trading is frequently seen as a high risk investment.
The truth is there are many advantages to both real estate investing and stock trading. Real estate investors have also been subjected to significant crashes in the housing market.
There have been many housing market crashes in the past. A hgue crash took place in the early 1990’s where house prices crashed down by over a quarter. If you had one or more properties with borrowed money at this time, it could have been disastrous.
The positive note about the housing market is that in the past it has always picked up and gone up. In many places in the world, there is a growing population and increasing shortage of houses. This often causes more pressure from buyers.
It is a similar case with stocks. There have been many crashes. Trading stocks is often more of an option to investors with a smaller amount of cash to invest. How to trade stock is possible with a small amount of money. So your mistakes can be free.
Some stocks are riskier than others. Some traders like to buy penny stock. These are often the riskiest.
Blue chip stocks are often considered to be lower return but much safer. They could be as safe as property. In the long term the major blue chip stocks have performed very well, although there have been some significant crashes, just like the housing market.
One big advantage of stock trading is that there is the option to get a SIMULATED stock trading account. This lets you to practice your trades with “free money”. It can be a great deal more difficult to do this with property investing. It is often a splendid idea to practice on a fantasy trading account for a few weeks before trading with real money.
