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re: Stock market vs real estate

Posted on 3/2/13 at 12:24 pm to
Posted by GenesChin
The Promise Land
Member since Feb 2012
37709 posts
Posted on 3/2/13 at 12:24 pm to
quote:

I think if you have the time, real estate is the better investment.



Econ professor of mine is presenting to the Fed inthe next few months his market research. It seems to suggest that artificially low interest rates are not conducive to growth and investment like many believe.

If you get good low interest rates and interest rates jump to say 6-7%, inflation will follow and your real estate's real value may stay constant but because your interest rates < inflation, you are making 3-4% return before an increase in home values occur
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