By Andrew Rosen via Iris.xyz
I find it interesting so many of us have strong opinions concerning stock investments vs. real estate investments. Personally, I blame most of the sentiment on the media. Beyond that exposure; however, there is a stark difference on the way we value and perceive both investments.
Stocks are valued in real-time on a live streaming (9:30am-4pm), free-exchange market. Heck, even after hours the trading continues. Places like Hong Kong open their markets at 8pm EDT. Every day, you can see and easily equitize your values.
By contrast, real estate has no such exchange. To get a price, an expert needs to tell you what they think the property is worth. Or, you can rely on a Zillow algorithm (Wait…a Zillow what? In a world of algorithms, you had to expect something for measuring real estate values).
I find it ironic that we check the values of our investment portfolios almost daily, yet evaluate our real estate assets infrequently (at best). I often ask clients, “what’s your house worth?” Unfortunately, the most common response I get is, “I don’t know, but I paid XYZ dollars for it.” Then there is a moment of silence between us, as it reveals that NO ONE knows.
In my eyes, this is really fascinating. I believe we should view our stock portfolio similarly to our real estate portfolios. So, how do we retrain 40-60 years of viewing these assets in different lights? For that, see my four-step guide below.
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