A good time to loan (mortgage a home you own) and invest in the stock market?

[crgarcia]

Start applying for a loan, get a mortgage on a home you already own in full (credit takes a couple weeks), besides you need to gather some required paperwork.

And invest in the stock market, for some years?

After the election. IMO the market is plunging on political uncertainty, rather than economic worries.

 

[nutmeg]

I was wondering about this today. The cash on the sidelines. Do you suggest real estate or stocks in the eventual recovery? Obviuosly the real estate is tangible but which one would present the larger return?


A little of both perhaps.

 

[crgarcia]

Quote from nutmeg:

I was wondering about this today. The cash on the sidelines. Do you suggest real estate or stocks in the eventual recovery? Obviuosly the real estate is tangible but which one would present the larger return?


A little of both perhaps.

From a practical standpoint:

* Stocks are much more liquid, with negligible bid-ask spreads (huge on homes on certain areas).

* Homes require expensive maintanance. Stock indices pay you (modest) dividends if you buy and hold.

* No 5% realtor commission (10% per roundtrip). Stocks commission are 1 cent per share or less.

* Current Stock prices are obvious and exact to the cent. Home market prices are not.

So I prefer stocks.
I'm not saying that homes may not be a good investment, just that stocks are more convenient.

 

[moarla]

you didnt learn nothing from the actual crisis???

 

[crgarcia]

Quote from moarla:

you didnt learn nothing from the actual crisis???

Stocks/homes were overvalued back then.

They are undervalued right now (for stocks, not yet for homes).

 

[staffpro]

if you buy now is it a good investment? sp500 longterm 1050 a good buy if we get to 900ish count yourself the luckiest motherfucker to still have capital to put into the markets

 

[poyayan]

Timing is everything. At some point, your plan will be a great investment..

 

[DonKee]

Since you can see the future, could you give me a 5 team parlay for this weekend?

 

[ElCubano]

Quote from DonKee:

Since you can see the future, could you give me a 5 team parlay for this weekend?

why parlay?? if he can see the future.....

 

[crgarcia]

Quote from DonKee:

Since you can see the future, could you give me a 5 team parlay for this weekend?

Nobody can foresee the future.

I'm just forecasting an economic recovery (which may take some years), which will boost the stock market.
Meanwhile nobody may know -including me- if this is the exact bottom.