Posted on August 20, 2009 - by Createwealth8888

Investing in Property is far safer than stocks?

Photo by chanchan222

Since STI low at 1205 on 11 Mar 2003, we are having jolly good times in the Stock Market all the way up to peak until …

OMG! Our lunch was quickly stolen by the Bear!

We quickly realize how damaging and fearful the Stock Market can be? Company stock price can crash 80-90% so fast before we could even overcome our emotions to hold or cut losses, and some even went to ZERO before we can do anything!

With such fearful experience in the stock market, retail investors (those with smaller capital) start thinking in the current environment of low loan interest rate of less than 2% fixed for 3 years, it is better to invest in property. Property will never crash 80-90% like stocks. So it must be safer as a long term investment over the future bear markets.

We have to be extremely careful as retail investors (those with smaller capital) as objective comparison between property and stocks is tricky, because property is typically a leveraged investment, in which the retail investor makes a down payment equal to only a fraction of a property’s value and borrows to finance the rest. Read more…

Related posts:

1. Investing in Property or Stocks – Revisit
2. New measures to ensure a stable and sustainable property market might cool interest in property stocks for a while…
3. Property Investing – A Discussion on the Pros and Cons