Real Estate Investing vs Stock Market Investing
There are plenty of ways to invest money today. Probably the two most powerful ways of investing your money are through the stock market and through real estate investing. Which one should you focus your time and energy on?
You can start investing money into the real estate market by buying a second house and renting it out. There are a few big advantages of doing this.
The first advantage is the unbelievable leverage that you can get from it. You will not find anyone who will allow you to buy a stock with only 10% down. However with real estate banks all over the country loan the same extreme amounts to real estate investors and to home buyers.
A second advantage of real estate investing is that it gives you tax advantages. The government knows just how important real estate investors are for our economy. So, they give these investors tax breaks.
Whenever you invest into real estate you can write off things such as the interest from the mortgage payments and any repairs that you will have to do to the property.
Stocks also have their advantages over real estate. For instance they tend to have a higher return then real estate. Over the long term the stock market appreciates at over twice the speed of real estate.
Stocks are also very easy to manage and extremely liquid. With real estate you have to make repairs and collect rent. Of course you can hire people to do this for you but it cost money. Real estate investing takes additional time or money to keep it going. Stock market investing on the other hand is low maintenance. Once you are in a stock you don’t have to do anything about it. Stocks are also a lot more liquid then real estate. Instead of it taking months or longer to sell it only takes a few seconds.
So, who wins? Where should your money be? Well, why not invest into both markets. This will give you more diversification because if something happens to one market you will always have the other market to lean back on. It will also give you more opportunities to make the big returns on your money.
If you are learning the stock market for beginners and buying rental properties you are on the right track to wealth.. Free reprint available from: Real Estate Investing vs Stock Market Investing.
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