You have enough money to purchase either a house or a business. Which would you choose to buy? Give

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Teacher Nina

Taking both factors of return on investment and risk into account, there are pros and cons for each decision.

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When a housing market is in rise, buying a house can contribute to achieving two objectives: living in a more comfortable, stable, and permanent place and a good investment for the future.

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>> OR: When a housing market is in rise, buying a house can contribute to achieving two objectives: living in a more comfortable, stable, permanent place and a good investment for the future.

On the contrary, when a housing market in in recession, you might keep losing money as time goes by and won’t have extra money to buy a business because the majority of your asset is invested in the house.

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If you foresee that a return on buying a house is not profitable, you might seek another way to grow your money such as investment in a business.

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In a normal situation, investment in a business could yield a higher return than buying a house when you succeed.

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However, it is much riskier and hard to succeed in running a business.

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According to surveys, only one out of ten new business starters succeeds.

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It means that you are likely to fall in to the group of nine failed businessmen.

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