Real estate. Are you thinking only of private dwellings or including also commercial and industrial real estate?
I used to have a portfolio of houses but got to the stage where I sold them all and put the money into the stock market. With stock assets, there are no ongoing taxes on the fact that you are holding the asset. There are no repairs. There are no problem tenants where you can spend a lot of time in courts or tribunals. If you need money, you can sell a parcel of shares, but not sell off one bedroom. Brokerage on buying/selling stock is minimal for and the market generally is very liquid so you can buy/sell the same day.
Those are my reasons for holding stock. Property rings the bell for some others, mainly because there is something tangible. I've learned to avoid arguing which is best. I know which is best for me.
That's exactly how I think of it - investing is pretty personal, because only the individual knows himself/herself well enough to predict what types of situations will bring out the best of them, or perhaps suffer b/c of their own defects/struggles.
Also the boilerplate advice that, say, Ramsey and financial consultants give out, I always remind myself that they tend to stick with the advice they can give out to very many clients across the board, with slight customizations only.........Thus, they may never recommend something that would work perfectly for YOU, only b/c it wouldn't be "safe" enough to add to their repertoire of things-they-recommend.
Example: a friend of mine regularly (has done this 15+ times), takes out a HELOC and actually leverages it to loan money to real estate flippers in his local city's Real Estate Investment Association. He does his homework, knows the game, and has never failed to turn a profit - Usually, a much bigger return than the market would give.
However, I doubt you'll find many financial consultants ever recommending that people leverage their HELOC! But it works great for my friend. It also satisfies his sense of excitement, brings him unquantifiable happiness to boot.
I have this fear that "Well, after all, there ARE generations on occasion that lose big in the stock market - and if it happens at just the right time, there may be no recovery in time to benefit that generation's life" - so while I realize the market is typically good, and comes back even after worrisome times, Yet, I know myself, and I will constantly be worrying that "Is this finally it? Has our country's politics, or world wars, finally gotten to the point where the stock market will be trashed and some massive paradigm change in currency or economy will make my stock moot?" ... Might be a small chance, but I'm a worry wart.
I like the tangible real estate, and I kind of like the "double"-benefits - the off-label benefits, so to speak, like when I am old, if my children are going through a rough patch in life, it may be a place for them to stay, or, it may be a winter home for us (in AZ) if we live in a cooler place, or whatever.
Of course, real estate is not divinely guaranteed either, but somehow I like the idea of a tenant paying my mortgage and after that point, even if real estate goes substantially down, I have an asset that is VERY unlikely to become "worthless"....in my personal feeling, less likely than could happen to stocks.
Many people really enjoy the stock market tho, and works great for them - I admire those who understand and work it.
