Real estate investments or stocks? Which one is more profitable and better? Let’s find out in this article below.
Everybody wants to build wealth but is unaware of the right method. Is it the real estate that can offer big dollars or is it stocks?
Talking about most people in the US, they invest in both areas. However, if you are thinking of choosing one and going for real estate, you have made the right choice.
Let’s tell you why real estate is better than stocks below. Continue reading.
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Here’s Why Investing In Real Estate Is Better Than Stocks
Real Estate Investing Is Easier Than Stocks
Any common person who is interested in building wealth can easily go invest in real estate and earn profits later on. However, the stock investment requires you to understand the strategies or tactics which makes it difficult for a common person like you and me.
Though homebuying can be a bit complicated at first, everything else is basic anyway.
You can easily purchase a property, give it to tenants and earn passive income while sleeping at home. Or else, if you want to sell, you can do so at a higher value when the real estate prices are high or by renovating your property.
Investment With Debt Is Safe
When it comes to real estate, you can also invest with debt which is also known as “mortgage.”
The process is simple. You pay a 20% down payment of a house and the rest is financed at the property’s cost. We call it safe because, in stocks, the debt with investment (known as margin trading) is risky and is especially for experienced traders.
Investing in stocks with debt, known as margin trading, is extremely risky and strictly for experienced traders.
Whereas, the mortgage can offer many advantages such as property ownership, profits, etc.
Real Estate Investments Serves as a Hedge Against Inflation
he best part is real estate is deemed a hedge against inflation because home prices and rents generally heighten with inflation.
Real Estate Gives You Ownership
If you buy a house, you get to have its complete ownership and you feel proud to have such physical assets. You can sell your property anytime when the prices are increased and voila! You get a higher profit.
With that said, I’d say real estate is a much better investment than stocks. Go invest in it and earn more!
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