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URL:  http://boards.fool.com/for-years-decades-my-mom-told-me-real-estate-29187929.aspx

Subject:  Re: Real Estate investing a smart move Date:  3/22/2011  2:21 PM
Author:  StockGoddess Number:  68685 of 75376

For years - decades - my mom told me Real Estate was the only place to invest and that stocks and bonds were a sure-fire way to lose everything. After all, she had cousins that had bought stocks and lost everything! The recent market crash did nothing but solidify her opinion on this...

She grew up poor and with nothing but a high school diploma, but worked her behind off to save enough to buy a cheap house, fix it up with her own sweat and labor and rent it out. She did this dozens of times during her life. This was hard, physical work - not easy! But she did make a pretty good living at it. As a woman born in the 30's with no degree she accumulated 7 figures by late in her life.

The problem now is that she has several pieces of real estate in one of the most depressed parts of the midwest, a place with 15% unemployment, and can't liquidate them. Stocks rise and crash, but you can be out of any stock in 10 minutes. And you don't have to pay property taxes on them.

I worked hard to get a degree, married a mate with a degree and then bought stocks, because I didn't, and don't want to physically work that hard. During the crash our entire net worth decreased by 25% in less than 2 years - BUT - it has recovered. Mom's house has been on the market 7 years and still no sale...OTOH I bought my first rental 6 years ago and it's doing very well.

YMMV.

SG (daughter of a real estate investor)
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