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I don't care much for real estate investing. You pay taxes, insurance, and maintenance on it. You only have a vague notion of what it is worth, and that all dep
by skookumchuck 9y ago
I don't care much for real estate investing. You pay taxes, insurance, and maintenance on it. You only have a vague notion of what it is worth, and that all depends on just happening on the right buyer at the right time. It can take a month to a year to sell. You pay 6% commission on selling it.
With stocks, you know second by second what it is worth. There are no taxes, maintenance, insurance, or liabilities that come with it. You can buy/sell it at any moment. With a discount broker, the sales commissions are minimal.
- prklmn 9y agoIf you’re talking about the US, you’re wrong in that there are capital gains taxes at 20% long term, and up to 38% short term on the sale of stock. For a real estate investment that you live in, couples do not have to pay capital gains tax on up to $500k worth of gains. Just to play devil’s advocate - when you buy a stock, you are buying nothing more than a piece of paper, and you don’t even get a piece of paper nowadays. It’s really easy to manipulate the price of a piece of paper.
- skookumchuck 9y agoIt's more complicated than that. The $500k is for married couples - it's $250k for singles. You also have to stay in the house for at least 2 years. There are a bunch of other rules, too. > It’s really easy to manipulate the price of a piece of paper. The real estate crash of 2007 shows there is no such thing as sure thing in real estate, either.