stocks vs real estate

[gojo83]

Getting older really makes a man think... I am looking to graduate this coming may and just found out a house I spent quite a bit of time in as a kid is quietly being sold by a family friend as the house belonged to their parents and the last parent just got put in the care home. The kicker is the house is all brick and over 4k sq ft AND has an insulated oversized 2 car garage with 12 ft ceilings. My dad has his gto parked in there till the house sells and I would say there is 6 ft of free room in front and 4 ft minimum behind and you could fit 2 cars nose to tail wide and then some. i currently own a house that is about 2200 ft and has a detached 3 car garage and it is worth about what they want for the bigger house. My cousins are considering moving back towards where i am now so i thought i could have family in the house and build my portfolio by accrual equity in this house and potentially the second house or does it make sense to toss money in the stock market? I dont like the trends i am seeing in the stock market but i am also concerned that real estate is not a good solid bet any more either... besides the garage there is also 2 other big advantages it is across the street from my parents should anything happen and i need to get there quick now it is a 5 hr trip minimum. secondly it is 20 minutes from a little local 1/4 mile strip where as currently it is a 2 hr trip 1 way to race and it is at 5280 ft vs 2100 ft back home.
One other thing that I am really torn about is that my ex and i are sorta working things out and she would only be a little over an hr away vs 6+ hrs currently.

That is about all the info I can think of currently ... except the house here just had the windows updated but the one by the parents would need those and appliances in the not super distant future

[firebird_1995]

I think when using the term "real estate" while describing investments it should be limited to vacation homes, flip homes, and rental homes. Not a primary dwelling. Don't get me wrong, its still an investment and adds to your total worth, but what it doesn't add in cash value is all those other things you added about being closer to parents, ex, etc. That stuff is, not to sound cliche, priceless. You gotta live somewhere, and if you took a small beating in selling your current home, would those priceless things be worth it?





PS, F the stock market

[Badbird_96]

Personally if you can get the house across from your parents do it. Nothing in that sounded like minus. On the current house though will your cousin keep it up and pay on time? Or did I misread that?

[gojo83]

my cousins just had twins and have done well with their current house and i trust them. they both have good heads on their shoulders and i think they would do right by me. as for the stock market i agree. i also could have my bro move in the big house and help with costs. plus on a side note it has a fireplace and a newer heating system... the current house has satans octopus heating system lol it is original to the house from 1925 lol

[firebird_1995]

Sounds like steam. I love steam

[gojo83]

it has been retro fitted with gas but it is huge and would have to be broke down to get it out

[chile]

I would agree with firebird. Not to be intrusive but its also about the money. It will be cheap to no have to drive all over the place to see everybody. You also have to consider is the mortgage payment gonna change? Is the insurance gonna go up or down? And things like that.

[firebird_1995]

it has been retro fitted with gas but it is huge and would have to be broke down to get it out

Probably full of crunchy asbestos too. Mmm. Yea you should move

[Paulster2]

If you are strictly talking stocks v. real estate (not including any other factors), I'd say real estate is where it's at if you can afford it. Real estate will ALWAYS have value. If you buy it on a note (as most people do), it should build equity over the long haul, especially right now with depressed housing prices. With stock, depending on the company, it can ultimately equal nothing. Look at GM for instance. Several years ago I owned stock in the General. With the recent reorganization, their stock went Tango-Uniform and was completely worthless. Now with the reissue of the stock, you can purchase it again, but would you want to? Stocks will always be greater risk than real estate. If you want to diversify your holdings, put money into a mutual fund or something where the risk is spread out across many stocks. This makes the risk a lot lower, though your gains will probably be slower as well. Think long term though. Just some thoughts.

[popo8]

I agree^^^ but also remember...greater risk= greater/quicker gain.... But also the reverse. (greater/quicker loss)


Larry (Popo8) Co-owner
LTXtech.com

[Paulster2]

I agree^^^ but also remember...greater risk= greater/quicker gain.... But also the reverse. (greater/quicker loss)

Absolutely true.