Investments are a very personal choice. People's opinions vary as to which investments are the best investments. Throughout history, these preferences seems to be swayed in direct correlation with what is happening nationally, or as in the past couple of decades, globally.
In the past, America had its gold rush days and stock market obsessions. Today’s Americans don’t seem to be as interested in either of those investments. It seems we are looking for something more reliable and easier to hold on to.
Property ownership gives you the unique ability to use the asset as you see fit, to a degree. Instead of gold or stocks that have to be sold to be of any monetary use, owning land and/or a house provides us with usability. Making its value even greater. Should you decide to turn it into a rental property, you’ll make even more money. Like the stock market, real estate does fluctuate occasionally, just not as often or as drastically. Chances are, you are not not going to wake up one morning and have your $500,000 house suddenly worth $5. Real estate is a more reliable investment.
And while it’s not impossible, real estate is harder to steal than something as portable as gold for example. Things can certainly be stolen from your property, but it’s unlikely that the land and/or house would be taken right from under you. Gold is universal and will always be worth something regardless of where you live. It is incredibly expensive to purchase, and you have to find a place to lock it up until you sell it. You may find that your return on the investment won’t yield as much as property or even stocks.
Stocks can generate a crazy amount of money. The trade off is that you have to stay on top of them everyday if not several times a day. The stock market is affected by everything that happens worldwide which makes it very unpredictable. Any catastrophe could result in an immediate drop in stock. There’s no real way to prepare for it. If you invest in a company who has the next new, highly anticipated phone and the stock is expected to rise greatly, that’s awesome. But what happens if an unforeseen bug in the phone is unfixable – that could be a huge loss. That’s why stocks are considered a high yielding investment. It’s also why they are more of a risk. The unpredictability is too much for some people.
A lot of people like the physicalness of real estate. You can touch it. You can grow it. It’s not without risks but most of those risks can be insured. And as time goes on it will increase in value. Most every generation living today has experienced a financial fail, whether it be the Great Depression or the more recent recession. For the most part, property still stands the test of time.
Every type of investment has its pros and cons. The best answer for you is to look at all of the options and make the best decision you can. You might want to diversify a bit to experiment. It seems like a nobrainer to make real estate ownership part of your plan.