Mutual fund or real estate investment

[financepro]

Which one is better according to you.

[starshard0]

Well, if you've got the capital, real estate seems like a better investment, but if you're like me and don't have that much to spend, mutual funds work well too.

[Xin Lu]

I wrote a post about this not too long ago:

http://baglady.dreamhosters.com/2008...n-real-estate/

So I think it really depends on what you are buying within the two different asset classes. There are good investments within real estate and stocks, but it is up to you to find them and manage them.

[verifiedtrading]

For the long term, nothing beats stocks. Historically real estate barely covers inflation over the long term. Mutual funds are highly touted as a comparatively safe investment vehicle with potentially high rates of return and that can be true If you choose carefully.

[financepro]

Thanks for the suggestions.

I have seen discussion on this topic on several other forums.

Thanks again.

[jaymcnamara]

Try www.recalc.net to find the rate of return on a real estate investment. It will figure it before tax and after tax. If the rate of return is 10% or better after tax the real estate may be a decent investment. The stock market has averaged over the long run 11%, however the last ten years the S&P 500 is flat. www.recalc.net/ret also has some good retirement calculators.

[realestate]

Some very smart people can invest in all three mutual fund, stocks, real estate. I think real estate is the best long term investment.