Before entering the foreign exchange market, some may scratch their heads while wondering whether they’re going with a brilliant decision or investing in real estate is the better idea. Especially if it’s their debut to handle a lot of cash, they’d rather be stressed by the predicament, than end up bankrupt over time. For someone who wishes to make his way to a financially secure future, the doubts that both parties are dealing with may put you in a confusing position.
Let’s Talk about the Capital
Capital is hardly a problem in the foreign exchange business. With less than $1,000, you can open a trading account. $200 will allow you to trade 40,000 currency units. With real estate, however, you’ll need a grand sum - particularly, 10% (at least) of the acquisition cost. If the property costs $155,000, for instance, $15,500 has to be in your hands to start investing.
The Target: Capital Gains or Passive Income
Ask yourself what you prefer: an easy and fast transaction (capital gains) or a long and often complicated money-making technique (passive income). Trading assets in forex markets is ideal if you plan on taking advantage of quick action since rates in the business tend to fluctuate instantly. In less than a year, you can acquire a fortune, provided you conduct smart deals. If the concept of owning property for you to sell eventually excites you, on the other hand, real estate is the industry for you.
Market Options
With an economic crisis, which could indicate that the prices of real estate properties are heading down, a safe option is to let go of your investment by selling it. In Forex, you have the opportunity to keep that similar form of investment. If you suspect that the value for your assets is going to depreciate, all you need is to exchange them for a different currency, then, buy them back after their value increases.
The Liquidity of It All
In the event that you want to have a break, you’ll be presented options. In forex, whenever you decide it’s time to sell assets, you can expect another trader to buy them within seconds. With real estate, if you plan on selling property, the tactic is to make the place marketable first. After, you’ll have to wait a week, months, or even, years to get it sold.
The Bottom Line
In the battle between the foreign exchange market and real estate, the industry that YOU will choose to put your money in will be the one that wins. Since both sides have their perks and drawbacks, it’s up to you to give your unrelenting focus as a trader or as an investor. Granted you’re willing to come up with surefire strategies to beat the odds, you can be triumphant regardless of the field you enter.