Time to Buy Stocks or a House?
Thoughts?
Best Answer
4075 points
EthanR answered 9 months ago …
If you can buy a foreclosure that is at least $30,000 below other recent comp sales in the area, I would buy a house rather than stocks. Today's 300 point loss in the DOW was the market's way of saying they have little to no confidence in the stimulus plan.
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3943 points
MNSL answered 9 months ago …
Those who can do good research and who can understand trend especially in the next 05 years should think about buying house or stocks.
Those who have less knowledge in housing market and stock market should not put their money in the current market. Experienced and experts have advantage over others in the current market.
However only one sector will have above average growth continuously in the next 05 years irrespective of depression, recession or slow economic growth. In addition few other sectors also will recover gradually in the medium term. If we can identify bull stocks in these sectors we can still make profits.
Some growth stocks will become non growth stocks in the next 05 years.
If we can buy house less than 50% of current value then you are in the safe side. Some analysts are now forecasting current economic slump is worst than great depression in 1929. In a way I have to agree with them due to some factors. Therefore it is wise to invest in stocks and assets which are going to benefit from such situations.
Things to consider when buying houses:
Credit market conditions
Whether you can sell easily
Whether we will have a depressed market or falling market in the future
Whether economy is going to improve in the next 05 years
Future action of baby boomers
Demographic changes
Unemployment rate
Economic growth rate
Action of top real estate investors
Resetting of mortgage rates
Inventory level
In USA we have to listen to EthanR. Because he has experience in real estate.
3943 points
MNSL answered 9 months ago …
Pl see follwing link as well. Will house prices go up due to following? Then we should buy houses now.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5xBdiMqKaqY&r efer=home
321 points
charlo answered 9 months ago …
during times like this i value liquidity.
finding a buyer for your stocks would be easier than selling a house.
but chances are you have some killer deals on real estate going around nowadays. ethanr is the real estate guru so i figure he would have the most appropriate answer.
