Should You Invest In Metal or Real Estate?
What Can You Do With Your Extra Money? If you put money in the bank for that little yearly return (2%) and feel safe, think again, your money at those little interest rates will give you less purchasing power in 10 or 20 years time. What do you think the banks do with your money? They invest in high return stocks and other investment vehicles with unusually high returns. If there are no returns, so what. There is no accountability. The world governments will ensure that banks will always operate, no matter what. If they don’t operate society will change in unthinkable, uncivil ways.
The question is, what could you invest in with your extra money? Well, if you think banks and financial institutions that are looking for their own profits are a good way to go, you could get into real estate and hope for favorable returns in the future (when you sell it).
Problem #1 with real estate that’s not your principle residence, is collecting rent, property taxes and renovating (to keep functionality and visual appeal). Ask yourself why does a house that ages, needs renovating and so on, become a little more valuable(sometimes)? That’s right, because all the banks say so. Why does your vehicle lose value daily?
Problem #2 Bankers put a value on real estate because they own most of it. When there is economic trouble, that value decreases for ALL real estate, comparably ( your owned home vs the banks homes). When you sell you have to wait for favorable market conditions and hope you get the money you want.
Problem #3 if you wanted to move from your country for what ever reason, you could not just carry your real estate with you. Can you put cash under your mattress and hope for it to build in value? NO. For example, Zimbabwe had a 10 trillion dollar bill, and now its useless. Read more