I agree with the author that investing in land or flats will have both the merits and the demerits. It is for this reason that I agree that critical situational analysis should be carried out before a decision on this matter is reached at. However, I tend to disagree that there lack enough points to help arrive to definite. This is because there are several factors that can be considered such as cash availability, depreciation and risk factors associated with this kind of investment.

The author also asserts buying of flats will be accompanied by other benefits such as security, accessibility and location advantages. However this may not always be the case as some flats are already in very unsecure and inaccessible areas. He author is also wrong in asserting that there is no leverage in land purchasing since the modern banking sector is offering leverage to investors wishing to venture in the business. It is also untrue to say that to it is easy to resell a flat as opposed to land since a developed property will be quite expensive as compared to land. During this waiting period, the investor may incur losses as a result of depreciation.

Investor, Know Thyself: Choose A Stock Category Based On Your Risk Tolerance

Kristina Zucchi has described several risk types and the different choices available to investor. I agree with her that most new investors are afraid to gamble with their capital. It is for this reason that they should be subjected to an enlightening session that will enable them make informed choices. However, it is important to understand that it is not true to assume that a stock that has history of providing strong payout will continue doing so forever. This is because stock prices have the tendency of fluctuating over time.

I also agree with the author that one needs to critically understand the different risk levels in order to make informed decisions. However, Kristina fails to address the issue of cash availability since different levels of investment will require different amounts of money. For instance, investing in real estate cannot be compared in investing in stocks.

References

“Investor, Know Thyself: Choose A Stock Category Based On Your Risk Tolerance.” Investopedia. N.p., n.d. Web. 17 Oct. 2014. <http://www.investopedia.com/articles/investing/101614/investor-know-thyself-choose-stock-category-based-your-risk-tolerance.asp> .

“Second home as an investment – buying a land vs flat.” The Economic Times. N.p., n.d. Web. 17 Oct. 2014. <http://articles.economictimes.indiatimes.com/2014-02-07/news/47126430_1_investor-multiple-flats-long-term>     .

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