When it comes to long-term investments, real estate is a dependable way to earn passive income.
Even home costs rise at times, 84% of Americans agree that buying a home is a good financial decision.
But what about stocks? Is it better to invest in real estate or the stock market?
Before you jump into real estate, do your research. Success does require capital and a good strategy.
But with a little information about it, you’ll see why real estate beats the market when it comes to long-term investments.
With stocks, buying and selling is a race against selling when stocks are high and buying when they are low.
More often than not, you watch the stock market yet sell or buy at the wrong times.
With real estate investing vs. stocks, it’s a far less emotional investment strategy.
Real estate plays the long game.
With a good property and consistent management, you have steady passive income for as long as you keep the property.
This reduces the risk of losing money on your investment.
You can’t control either the stock market or the real estate market. But in general, equity builds over time, and home values increase.
Investing in property now pays you with steady passive income and a higher return when you’re ready to sell.
Who likes having your cash tied up where it’s of no use when you need it?
Having a nice stock portfolio is impressive for some. But when investing in stocks vs. real estate, that cash is of no use to you until you sell stock.
With rental property, steady cash flow means your money is available to you as long as you have paying tenants.
Your cash is also adjusted for inflation. You’ll update your tenant’s rent to keep up with rises in property taxes or other property management costs.
You might also decide that flipping houses is your preferred way to invest in real estate. If so, steady cash flow won’t be the same as using a property for rental income.
But if you have a consistent process of buying, renovating, and flipping homes, you’ll still enjoy your cash income as you need it.
Paying less in taxes each year improves your bottom line.
With real estate, your properties depreciate each year. However, the value typically increases over time.
The IRS allows you to depreciate your property over time based on what you spent when purchasing the property. This usually results in a tax credit–each year–on top of your rental income.
And this takes place all while your property increases in value.
If you are new to investing, it’s tough knowing if you should invest in real estate or the stock market.
But we think real estate investing vs. stocks is a more secure investment strategy with better returns.
And we’re here to help! It’s free to talk with us or use our services when investing in real estate and your future.
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