Real Estate vs Stock Investing

Real Estate vs Stock Investing

  • 05/29/22

Real Estate vs. Stock Investing: What’s the better solution? 

Real estate vs. stock investing is a question as old as time. Each method has its pros and cons, and it comes down to your preferred way to invest. The decision should ultimately come down to your financial situation, risk tolerance, overall goals, and preferred method to support. Understanding real estate vs. stock investing will help you decide which investment route better suits your needs.

Pros and Cons of Stock Market Investing

While the stock market can have high returns, it also has higher risk. Stocks tend to fluctuate in the market, leaving stockholders unsure how much of a return they’ll see on their investment. If the economy takes a plunge, the stocks will and real estate, which can result in a loss in return on your investment. Many people choose to invest in stocks because it requires minimal effort. Investing in the stock market means you’re purchasing a piece of a company that you believe will be successful in today’s economy and the future. You can hold on to your stock for as long as you’d like, but you will have to make sure to sell it when you believe you’ll get a greater return or before something might affect the price of your stock, such as a failing economy. 

Some positive touchpoint for investing in the stock market is that you don’t have to have a ton of money to get started. Since stocks are liquid, they can be easily purchased online and sold quickly. However, the stock market is more volatile than real estate, and selling stocks can increase hefty taxes if you have a low-risk tolerance.

Pros and Cons of Real Estate Investing

Investing in real estate is a preferred method because it offers passive income, security, and low risk. The pros to real estate investing outweigh the cons by a landslide. You will receive monthly passive income while having a more significant amount of money up front to put a down payment on a house and other financings. It’s important to note that real estate isn’t liquid, so this investment method isn't for you if you’re looking to buy quickly and sell quickly. Investing in real estate is a safe and secure way to make passive income and gain appreciation over time. 

Real estate investing grants tax advantages and hedges against inflation. Your investment will continue to grow in value as you perform repairs and maintenance. It’s scarce that the housing market will crash in 2021 because there is always a demand for homes, and now they need them through the roof. When it comes to real estate vs. stock investing, it revolves around your risk tolerance. Real estate investing is little to no risk and is ideal for those who want to feel secure and safe in their investments. 

How We Help

At Bozeman Realty Listings, we understand how important it is for you to make sure you get good real estate deals to make a high return on your investments. We are a locally owned real estate office serving the people in Bozeman, Montana, and surrounding areas. Inventory is low, so now is your chance to buy. Get started on your real estate investing journey today, and contact us today to schedule an appointment.

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