Guidance: In the next 5 years, which is better, 1 million real estate or 1 million cash?
In the next 5 years, whether it is better to own 1 million real estate or 1 million cash depends on factors such as personal financial goals, risk appetite, income level, and living needs. As a real asset, real estate has the characteristics of stability, value preservation and appreciation potential, but there are also problems such as poor liquidity, high maintenance costs, and great influence by policies. As a monetary asset, cash has the characteristics of strong liquidity, high flexibility and convenient transactions, but there are also problems such as declining purchasing power, inflation, and market fluctuations. When choosing real estate as an investment method, the two most important factors are location and asset liquidity. The better the location, the higher the value and income of the real estate, but it also means that the more funds are invested, the longer the funds are occupied, and the more difficult it is to recover the funds; The higher the liquidity of the asset, the more flexible and secure the real estate, but it also means that the less money is invested, the lower the value and income of the real estate. Investors need to make trade-offs between these two factors when choosing real estate.
