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In: Finance

Direct Real Estate Investing Answer the following questions and continue your discussion with other students in...

Direct Real Estate Investing Answer the following questions and continue your discussion with other students in your replies. 1.Is now a good time to be a direct investor (hold legal title to the property) in real estate? 2.On what information (other than your gut) do you base your answer? If you answered YES to question #1, why is owning real estate now a good investment? If you answered NO to question #1, what type of investment would be better than real estate? Support your answer with facts.

Solutions

Expert Solution

  1. It depends whether to invest in real estate directly but I would go with NO
  2. The reason being not choosing real estate as an investment opportunity is because it is still not justifying returns compare to other asset classes like equities, mutual funds, only in one condition you can invest in real estate if you see good future of development in particular location which may yield a good return compare to other asset classes

What type of investment is better that real estate: Equities

Real estate sector did not give a good return compare to equities from 2008 housing bubble housing and real estate market did rise the way it should still has a stagnancy however stock market rose by 19% in 2017 which is better than any asset classes if you invest sensibly in good quality stocks with long term view and equities helps to get compounded return which you wont get in real estate or any other asset class.


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