Thursday, August 27, 2009

Investment Properties Compared with Stock

Buying investment property is really no different than buying stock. The market for property moves much slower than the stock market does, and this is a very good thing, for it gives us plenty of time to make informed, well calculated decisions.

If we are buying in hopes of the value going up, or relying on appreciation for profit, then we are no different than a gambler. Gamblers exist in every industry. Then, there are those who consider themselves investors because of their intense research on the qualitative factors surrounding an investment, but these people are really just speculators. Both gamblers and speculators play the guessing game, and they both try to predict the future. Most of those who “invest” really speculate, except that they think they are investing. They think that they are investing because they are doing a lot of research. However, they never look at the correct, factual information. What many of them do is simply read the opinions of “experts.”

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