Is Lahav LR Real Estate Ltd’s (TLV:LAHAV) Stock’s Recent Performance Being Led By Its Attractive Financial Prospects? Simply Wall St May 2, 2020. Most readers
If I’m a recent college graduate, is it smarter to invest in the stock market or in real estate?
As several people have pointed out, this isn’t an either or decision. The biggest difference between buying real estate and buying stocks is liquidity. Buying and selling stocks on a major exchange through an online broker is easy. You can do either in minutes. It is also very cheap. A typical stock transaction costs a few dollars. In contrast, real estate is anything but liquid. It takes time and effort to buy or sell real estate and the transaction can be very costly. Therefore, you will approach these investments very differently.
Another difference is the capital requirement. You can start a stock portfolio with a few thousand dollars. Real estate investing will probably involve much more.
Either or both stocks and real estate can be excellent investments. They can also be a total disaster. Personally, I have lost a ton of money in the stock market. I am fortunate enough to live in an area where real estate has increased in value by many factors over the last 40 years. I have done better in real estate. However, this isn’t true for everyone.