Good idea? Perhaps. But the answer to this question is more art than it is science.

I wrote recently about how to prepare and manage for making a real estate investment in Israel.

I was asked recently by a client how real estate investments stacked up versus the markets. Now, I could have gone into the research comparing average price appreciation for the housing sector vs. the stock market. But, it's not really a fair comparison. Every house, every neighborhood and every city and country are subject to different market forces, just as different asset classes and exchanges are subject to particular nuances.

The question of whether to put your money into a home or the market can be addressed via one issue only: liquidity.

Assuming you can make strong returns from both real estate and the market, are you comfortable tying up money in a house? Me, I'm a stock guy. I like getting monthly statements with my performance. If my portfolio needs tweaking, I can do it daily. I feel better having liquid investments versus tying my assets up. Others prefer knowing that bricks and mortar make up their investment. It provides a certain level of security.

It's also important to consider asset allocation into decisions surrounding investing in real estate. Just as I would construct a diversified equity portfolio, I think investors should view real estate as another input into an asset model. Am I comfortable with 50% + of my net worth in one asset? I'm not personally and I wouldn't recommend doing so, but that doesn't mean it's necessarily a bad decision.

Just some food for thought.

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Zack Miller helps clients make sense of their investments. A former equity analyst for a leading multinational hedge fund, Zack writes about issues pertaining to investors investing internationally . For more information about making FinancialAliyah©, call 1-888-327-6179, or email zack@profile-financial.com