Thursday, May 31, 2012

Deciding on whether to invest in property or buy equities - Zillow

I do not know what is best for you but here are some long term historical facts to consider:
1. On average RE returns 1% over inflation
2. On average S&P500 returns 5% over inflation

Having said that day trading can be risky. As the last 5 years have shown so can RE. A prudent approach may be to follow Warren Buffet's advice and invest in index funds (Vanguard S&P 500 or SPY) on a dollar cost basis.

Note: I am neither a financial expert nor a REA and I cannot advice on either choice and I only state what I have read; please do you own research and thoroughly become familiar before taking either step. In both cases the waters can be treacherous and frequent encounters with sharks are not uncommon.

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