Most people who want to build a financially secure future, choose to invest or trade in real estate. In fact, if you have a look at the names of the richest people in each category will be assigned to most of them large portions of their assets in real estate. Donald Trump, who made his fortune in real estate is very popular and his success is an inspiration to us all.
Investing books like Rich Dad, Poor Dad, by Robert Kiyosaki pounds and other activities over the past fifteen years, the average person in need of real estate investments. Thanks to this book many people have opened their minds to new possibilities, now think for themselves.
This article is not to deny the validity and wisdom of investing in real estate. However, it can not be the best option for everyone. Each of us has different limitations and our circumstances change. At the beginning - most of us - we have to decide which area of specialization, because the money provided to go around. What I can do is to demonstrate at least some aspects of trade and investment in both areas. Then I let you decide what you want to focus.
I must say I have not invested in real estate, but I've seen and I asked the same questions you are asking now, perhaps. I read a lot about and my estimation is purely from my reading. Individuals, real estate, as their vehicle to be able to create wealth of different perspectives and I strongly advise you to seek their advice in order to achieve a more balanced perspective on this issue.
Passive income or capital gains
If you like the idea of buying a property for rental income and then receive the real estate market may be better for you. You can structure your property and contractual arrangements relating to passive income you receive from your tenant to maximize.
However, if you purchase a property, especially since you can resell at a higher price, then think, then you want to make money primarily from capital gains. If this is your philosophy, then Forex trading may be a better vehicle for you real estate, because the exchange rates fluctuate more rapidly than house prices. In addition, the operations are easier and will immediately enjoy.
CAPITAL
To buy a property, must be at least 10% of the total cost of ownership, if your bank is willing to lend you the remaining 90%. If the house costs $ 350 000, you must cough, $ 35,000. This is a year in gross income for many people.
If you want to start trading Forex, most brokers offer a merchant account for only $ 200 to open it. With $ 50, you can exchange 10000 currency units, if you have a margin of 200:1.
CASH'
If you want to buy or sell currencies, there is always someone to buy - or sell - is at very attractive prices. The forex market is the largest market in the world and if hundreds of thousands of dollars to replace them with another currency, you can find in seconds. To buy or sell a house or an apartment, expect to wait weeks if not months.
Product homogeneity
In the real estate market, a house is not the same as the others. Each property is unique. We would have a better basis, a lower quality or design a beautiful garden, compared to others. Knowing these strengths and weaknesses in an important factor if you make money from a transaction. So if you want, or if you are based in good sales, promotion, negotiation and negotiation of these differences, the real estate market for you. In addition, lawyers are your accountants, consultants, brokers and consultants play an important role in your success.
If you want to trade currencies, there is no need for the price with the other party to negotiate. If you are a seller, it is not necessary for potential buyers on the benefits of the product to be educated. If you buy, you have the peace of mind that you always have the best possible price for the currency of your broker at this particular time.
Transaction costs
Buying and selling real estate is much more expensive than buying and selling currencies.
'Short' MARKETS
If you have a property, and you think the price will decline in the future, the options are limited: it is the property or sell it now. In Forex, if you suspect that a currency to lose value, then you can trade against another currency. You buy it again after it has already been reduced in value to realize your profits.
OPERATIONS OF MEDIATION
In real estate you are dealing directly with the other hand, while the other side of the transaction. That's why you go through a lot of paperwork and ask your lawyers to make sure you have the options to know where the other party does not fulfill its market share.
In Forex, you should not think if a buyer or a seller share of the contract to satisfy any reason to worry because you do not deal directly with that particular person. I'm with the broker is always someone on the other side of the market must be safe.
COMFORT
The Forex market is open 24 hours a day. You do not get to the buyer or seller in person. Do not have meetings with lawyers, accountants, bankers and so on to perform. You can buy and sell currencies in their pajamas at midnight, and if the transaction is completed before going to bed.
CONCLUSION
Overall, if you are looking for an investor to make money are a combination of rental income and capital gains, it is possible in real estate for long-term investments. If you want a dealer are purely motivated by profit to capital gains, then Forex is probably better for you than real estate trading, because you can start with a small fund, and the return is limited only by your ability to trade well. Transactions are mediated, it is more convenient and transaction costs are much smaller. The market is also more efficient product homogeneity and liquidity. Finally, there are ways to win, no matter if prices go up or down.
I think if done correctly, no more and no less risky than others. The risks are manageable for you. With this article I hope I helped you decide on your particular situation.
Invest in Real Estate or Trade Forex ?
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