REAL ESTATE INVESTMENT
Real estate is an asset form with limited liquidity relative to other investments
A real estate wholesaler only has to put ten dollars down
and they can profit five to ten thousand dollars once they assign a contract to
someone else.
Its capital intensive (although capital may be gained
through mortgage leverage) and is highly cash flow dependent
Investing in a rental property will provide a steady cash flow Real Estate markets can easily crash, and then the property that you have isn't going to be worth what you owe on it.
Even if the dollar depreciates, your asset appreciates
with inflation and you will have locked in a long-term loan that you repay “for
free
But it also reflects a faith in the legitimacy of the
local property laws and legal system
But it also reflects a faith in the legitimacy of the local property laws and legal system; that you will be secure in that property, and no one can illegally take it from you
GOLD/LONG TERM STOCKS/PRECIOUS METALS
Inflation will cause the price of gold to rise substantially(The US dollar will eventually become nearly worthless as inflation starts to peak)
No discounts exist for gold(as soon as it is purchased
the only way it will make money is through increases in price)
It is also a known fact that gold never really loses its
style
Gold will yield profit as well but it is considered dead
weight because once it is purchased nothing can really be done to cause it to
bring in a steady flow of cash
Gold is safe in the sense that it never really depreciates in value and provides a safer long-term investment(NO MAINTENANCE COSTS)
precious metals are equivalent to savings or wealth
stores, not investments
In contrast to property investment, there is no
financing, thus no leveraging to allow you to build wealth
In contrast to tax deferment opportunities, there is no
tax advantage
Your investment is subject to confiscation; arguments that collectible coins are immune from seizure are flawed since there is no guarantee this protection won’t ever change.
This means that when inflation hits home real estate will
rise in price just the same as gold would
Precious metals are prone to manipulation by those motivated to suppress their value in order to boost paper money the low transaction costs and high liquidity claimed for precious metals are a perfect formula for greater volatility
