Real Estate Blog

Should You Invest in Real Estate or the Stock Market?

No matter how you invest your money or where you invest your money, it can be huge gamble. However, when you are deciding whether to invest in the real estate or stock market, your best bet is to put your money in real estate. Think of it this way: would you rather put your life savings on a black jack table in Las Vegas or would you rather buy a home that can provide you shelter and grow in value over the years? Investing in the stock market is too risky, but investing in real estate will have more significant returns and you can better keep an eye your investment.

For one, natural increases in the economy, like inflation, will benefit real estate investors more than they will benefit people that invest in the stock market. Over time, if you own a house or are a developer who has invested in a number of properties, you can adjust rent or prices accordingly. Essentially, the investment you have made on a particular property is almost guaranteed, provided that you put in the necessary maintenance, to make a return. In the stock market, these kinds of returns are far less guaranteed.

Investing in the real estate market over the stock market is also more tax advantageous. Over time you can write off things, like maintenance costs, renter damages and loss of deposits, and even the interest accrued on mortgage. In the stock market, it is hard to write off losses and there are fewer opportunities to write off certain expenses. This is mainly due to the risk factor contributed to the nature of trading on Wall Street.

Also, investing in real estate will actually take less time than investing in the stock market. The stock market needs almost constant, daily attention and unless we can afford a money manager to keep making our bets, it can be difficult to spend each day managing and overseeing our investments. In the real estate market, it is a lot easier to purchase a property, have a renter move in and let the rest happen on its own. Any trading academy will tell you that investing your money is all about evaluating how much time it is worth. If you are investing in the stock market, you might be spending more time than money, which can actually be the most negative type of return.

At the end of the day, both the real estate and stock market will have their ebbs and flows, but only one will remain as a constant. The real estate market might dip, but no matter what, from a macro perspective, it is always increasing. Essentially, if you invest in the real estate market you can almost guarantee some kind of return. The stock market on the other hand is more risky and there are too many variables to consider, which can either make you extremely wealthy or bankrupt. Time is another factor. If you don’t want to spend your life monitoring your investments, than it is always wise to put your money in the real estate market.

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