What to invest in? Stock Market vs. Real Estate

[@davidgarry3449]

“It’s not too late to be early to crypto “

[@robertson7693]

@Stephen George Wow that’s great How have you been able to achieve this?

[@irisjobs8700]

Investing in forex or bitcoin is very lucrative, your riches will definitely last to your generation

[@marksonhenry4377]

@@irisjobs8700 you’re right!

[@marksonhenry4377]

I think it’s time people understand the need to invest in bitcoin now , because of the way it’s making good livelihood for people

[@andreijikh7687]

I have always had huge interest in bitcoin trading but I really don’t know how to start or go about it . A lot of people preach of getting a broker but I’m yet to find one

[@Offa7a]

Plz find me that building with 8% cap after expenses

[@Themystergamerr]

yes! I'm a great believer in real estate. when I win the lottery I'm gonna become a property developer

[@Freddie1980]

To invest in property you need to have a lot of cash to start with and for most of us without some inheritance it's improbable. This is putting aside all the other aggravation of owning property (rent void periods, non paying tennant's, repairs, maintenance, management fees etc). Stocks are more accessible and history shows the stock market over long periods always beats the housing market in terms of ROI. To give some context if you invest just $1 in mutual fund (doubt you could invest just $1 but this is an example) at an average ROI of 8% (just following the s&p average) over 40 years your $1 would be worth $26. Now look at what happens when you invest $1 each month. Over the same period for $492 invested you would end up with $3818.50. Taking it seriously and investing $250 a month you would end with $954,624.44 for $123k invested. The power of compound interest. 😁

[@jackiedelagarza3947]

Do u recommend on the Motley Fool investment

[@trentmsteel]

Well you also use leverage with stocks by using margin accounts. A bank may not lend you money to buy stocks but your broker will and do. 50% on top of your cash so if you have 100k they will lend you 100k . So is this really a fair comparison .

[@shelgran1911]

This video was confusing and made a lot of assumptions that I think is potentially extremely dangerous for the viewers. Your other videos that you made were explained much better and understandable by you! Trust me people loose their asses in real estate as well and another commenter that posed the real question of coming in at a high market value. What do we do with that? I'm not saying stocks are the answers either. I'm not making any assumptions.....

[@edwardkirch2140]

Another great video keep up the good work

[@cynthiagraham4046]

Laura, thanks for having my question answered!! Was leaning toward real estate and now will dive in🎚🇺🇸🇵🇭👍 🏡

[@DivineTrueGod]

Can someone explain where the 8% "cap rate" came from, and how does that generate $40,000 to pay for the $20,000 annual interest? ... is the 8% from rental income, where a $500,000 house can rent between $400,000-$5,000 gross monthly income before paying for 15% management fees?

[@shelgran1911]

This is my least liked video she has done. Up to this point she does a great job explaining things. However, she brought on this did who does a terrible job explaining things and made an incredible amount of assumptions.

[@laurapitko6404]

Sure Michael, when we get investment properties we buy them based on the cap rate to begin with and the cap rate the $40K is after all expenses and management fees, and that cap rate is initially generated by rental income on that property.

[@laurapitko6404]

Thank you for your input Shel, I can see that, from now on I am going to be the one explaining the content.

[@shelgran1911]

Thank you @laura appreciate the reply!

[@universal3020]

What about compare paying off your personal mortgage at 4% VS. Earning 4% return on investment in stocks market. Which is better? Considering yearly mortgage interest deduction and tax benefits of keeping a mortgage?

[@samuelromero159]

You can also try options, you can start with as little as 1K, of course if oneself would have more to invest the faster the wheel moves, the idea is to compound your gains, not just stocks.

[@tallen2549]

I thank you

[@adamcombs7541]

What’s the name of the song??

[@Jesus-eg3yb]

That was a great video Laura, thank you for the info.

[@adamcombs7541]

Cool video very informing the song is awesome who is it?

[@DarrenD777]

Cool! Thanks Laura! Thanks Mr. Kirch!

[@barneygoogle2720]

Well, that's impressive. Am interested in learning more about the risks. What if I get in at the top of a market cycle, real estate prices drop and I can no longer get the same income from the property?

[@laurapitko6404]

Thank you, the cash flow of the property will not be affected if the overall value of the property fluctuates :)

[@reddiamond306]

Cool vid, opened my eyes to what I may do in future. But I don't understand how the 2% inflation can be slapped on top of the 8% cap. Doesn't cap rate depend on inflation, and so nullifying it?

[@laurapitko6404]

Thank you! Property value can go up or down but the cap rate return on investment will stay the same, cap rate is not affected by inflation. The cap rate is what the property will be cash flowing after all expenses.

[@SameerAlomari]

I'm all for investing in Real Estate, but this video doesn't show accurate numbers.! It's very hard to make 8% net cashflow on a $500k property! You need to rent the property for close to $4,200 in order to make 8% net cashflow after deducting maintenance, taxes, insurance, vacancy and management. I'm not even counting the interest because the tenant is paying. $500k property in the North East rents for around $2,500. Also, he got the depreciation wrong. You can't depreciate the land value! so if the land worth $100k, you can depreciate around $14,500 annually. You can accelerate depreciation during the first 5 years though. The idea is great but the explanation is really horrible, thanks for the video.

[@keepinitsk8a516]

Investing in stocks like that yeah but if day trade or swing trade you can make 7000 in one day I’m sure 100k is enough for it.

[@FreshKicks4545]

Pls let me know how to make that much in day trading. I'm getting killed lol

[@alexbond7408]

And how do you feel about cryptocurrency? worth investing now?

[@laurapitko6404]

Cryptocurrency is like any other investment you need to understand it, if you do invest in it.

[@nekrasikkatya]

If you are interested in cryptocurrency, you know that the price has now fallen, so buying cryptocurrency at today's prices, you can make good money on growth

[@anastasianikitenko5222]

@@nekrasikkatya that's for sure .. I too do it now .. I buy tops as a long-term investment, to in the future I will get a good profit on growth, even taking into account the high commissions of the exchangers, it is still very profitable, at current prices)

[@dmitriyagapitov]

@@anastasianikitenko5222 buy all kinds of tokens. the Commission is invisible, even if a lot of interest will be removed . but you will earn much more than the top cryptocurrency

[@Даниил-с1б7и]

@@dmitriyagapitov I think that commission isnt invisible) Many Altcoins cost really big money. We can talk about profit only if we invest 1000$+ - 5% commission.... We spend a lot of money of that.

[@zaccy]

$100k straight into GME

[@Thorocious]

Neither right now. We are on the edge of what they're calling the everything bubble. Crypto would be the better investment right now for the future.

[@laurapitko6404]

There are no guarantees on any investment, but if you find a good real estate deal even if the value of that property drops the cash flow will stay the same as long as you keep the property rented. With crypto or stocks you can loose everything overnight.

[@FF-xl7yw]

you should REALLY do something else instead of wasting people's time as you surely d NOT understand the STOCK or the Reality market!!! if you are sooo good at it... just ask yourself... how much is YOUR net worth? and where the heck did you find this guest?

[@nimashah6108]

realtor u need a hugh down payment......... not agree this video

[@Interestingworld4567]

These videos are GOLD (⌒ー⌒)

[@laurapitko6404]

Thank you Francisco!