Alex C asked in Business & FinanceInvesting · 1 decade ago

Invest in Gold or Real Estate?

I have decent IT job and would like to invest my savings in either Gold or Real Estate. Which choice is safer? I know that Gold prices will never probably go down (at least in the near furtre) but it seems to me that investing in Real Estate can be a good choice. What do you think?

4 Answers

  • 1 decade ago
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    We are at the end of a long real estate bubble, so prices are going to drop - so I would be selling rather than buying real estate now. However Gold is a good investment. Also you should realize that the dollar is going through a deflationary period, which means that the value of the dollar will increase vs. other foreign currencies like the Euro. So having your money in money (US Dollars) is allso good as it will be worth more in the short term future.

  • 1 decade ago

    Gold is safer but wont give you a good return and yes it can drop in price, it did 20 year ago.

    the current market is allowing to buy up to 50% of the homes value.. most expert say that if you have money to invest and you are not planing to use it for 4 year that will double your money...after the market hits bottom an it will house prices wil start to go up an higher than before between 5% and 15% a year depending on the area, if you add the 50% discount on the house you bougth that's a really nice investment.

    plus if you rent that's all extra, just give it to a real estate company so you don't have to go thru any trouble...

    Anime Girl Real Estat buble burst one year ago, we are waiting for the bottom now. prices wont go down more than 15%..

  • 1 decade ago

    Neither at the moment. Real estate will continue to drop until the banks let ordinary working people get loans. And as we all know that is close to impossible at the moment.

    I do believe that the housing market will still drop another 20-30% before 2009 is over.

    As for gold, it is dropping as well so it is a good way (if you are in it for the long term) to put your cash in a safe place. But if you are looking for a good profit your best bet in ttoday'smarket is Forex or shorting shares.

  • 1 decade ago

    Unless you plan to rent out your Real Estate, it's not an investment- it's where you live. Even if you do plan to rent it out, there's no guarantee you'll make money. You'll have to pay property taxes, upkeep (this can be expensive), mortgage and insurance. You'll have to evict your renter if he doesn't pay his rent, and listen to him complain that the plumbing doesn't work.

    With gold, on the other hand, you stick it in a safe-deposit box and forget about it. No one can tax it, and it can't default. You can put that gold in your pocket and take it anywhere in the world. Try putting real estate in your pocket! ;-)

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