facebookShould I cash out my $200k stocks and use it for property? (e.g upgrade to private condo and sell in 5 years time) ? Do Check my portfolio - Seedly

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Anonymous

01 May 2021

SeedlyTV

Should I cash out my $200k stocks and use it for property? (e.g upgrade to private condo and sell in 5 years time) ? Do Check my portfolio

Should I sell and use the cash for property investment
Apple :30% of holdings
BAC : 10% of holdings
Amazon 40% of holdings
Facebook : 20% of holdings

Present Paper Gain : 74,000
Initial investment : 140,000
Estimated Current Value : 210,000

I bought the stocks 2 years ago.
Thought of capital appreciation for property market

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Discussion (4)

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Depends on your goals and view of the stock market vs real estate market. Also if you are buying and holding the property vs flipping it.

Capital gain in the stock market has historically been greater than real estate in general.

Real estate comes with a lot more work as well. As an investor in a business, you get to sit back and relax instead of finding solutions to business problems. In owning a property to rent, you will need to settle a lot of administrative issues with agents, tenants, maintenance etc… there are also a lot of bad experiences with tenants that don’t pay/create havoc such as crimes committed or fire damage in the property and that can freeze your rental income. Not to mention having to undergo stress of legal procedures.

Warren Buffet and Charlie munger (who made his first million in real estate) both mentioned they preferred stocks over real estate because real estate market is a lot more difficult to find mispricing and hence opportunity If you would like to find out why, I answered smth similar here

http://seedly.sg/questions/why-do-so-many-peopl...

NO. Not all $200k

When u sell your property, u need to buy another one, u need a roof over your head, and each cycle min. 3-4years. Your capital is stuck. Stocks are more liquid.

properties are non-productive asset, is more suitable for capital presevation, i.e. u earn enough you just buy the property and hold for long term.

But i doesnt mean u should not invest in properties, just dont sell all the stocks to buy property.​​​

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