Investing. You know what that is, right?
It’s one of those things that smart adults do with their money.
Investing your money will help grow your financial security. And the earlier you start, the better off you’ll be.
Are you looking for a great investment opportunity? If you’re torn between whether you should invest in real estate or stocks, take a look at why real estate is your most profitable option.
Invest in Real Estate or Stocks?
Ten years ago over 2/3rds of the American population was invested in stocks. After the great recession, that number is down lower than 50%.
While most financial advisors are trying to encourage investors to leave their money in the market, many are trading in their shares to invest in real estate.
Here are a few reasons why real estate is the better option.
1. Tax Benefits
When it comes to owning real estate, there are a lot of advantages when it comes to your taxes.
First, you can write off the depreciation of the property. Basically, any wear or tear of a commercial property.
Second, When you sell the property, you can do what is known as a 1031 exchange. This is where you will not have to pay capital gain tax as long as you invest the money into a similar property.
2. Having a Tangible Asset
There is something comforting about driving past a property and being able to say that you own that.
Whether you are trying to flip a house or looking for a rental property, having something tangible to work on and improve. This can be important psychologically for many investors.
There is something comforting about being able to see your investment in person rather than just a number on the computer screen.
3. Familiarity
For most people investing in real estate is more comfortable than investing in stocks.
Mostly because of the fact that they understand it better.
Think about it, everyone understands the concept of buying a house. But the strategies and planning that comes with stock investing can intimidate many investors.
Real estate is much less complicated.
4. Hands On
Fraud is less likely to happen in real estate. In real estate, you are physically involved in every step of the way. You show up, inspect the property, run the background check on your renters, and keep up on repairs.
When it comes to stocks, you basically have to place full trust in your the management company and auditors.
5. Inflation
Real estate is one of the only ways to fight inflation.
As inflation occurs, housing and renting costs go up. So if you buy a house for $100,000, ten years later, that same house is worth $180,000. Not a bad way to make some extra money.
Real estate investments have traditionally been a great way to protect your money against the loss in purchasing power of the dollar.
Get Investing
Are you still wondering whether to invest in real estate or stocks?
Let’s just say that investing in something that you know will be around for a long time, and will increase in value over time brings some peace of mind. That stock you see as a blip on your computer screen? Not so much.
Give me a call and I can help. I understand that investing your hard earned money is a big deal and I want to help you make the best decision possible.
