Buy A House Or Invest In Stocks
You may be asking yourself whether to buy a house or invest in stocks. Or what the financial difference is between investing in rental property vs stocks? If you are a1sking yourself those question and want to know how to invest in stocks and real estate, then you came to the right place…well, sort of. That’s because you will find that real estate outperforms stocks in the long run and even in the short term most of the time. There is nothing wrong with investing in stocks, as a matter of fact I even do that or crypto currency from time to time. However, it is only a small percentage of my portfolio and it not even considered a true investment for me. See this related video for more information, investing in Bitcoin or other cryptocurrencies is somewhat similar to stocks.
Best Investment – Bitcoin or Real Estate
Contrary to popular believe don’t wait until you have paid all of your debts to start buying real estate. That might be the dumbest think I have heard. See this article to learn how easy it is to get started in real estate even without money or credit.
Now once you’re are mentally ready, you’ll start hearing about the risks and rewards of investing in real estate vs stocks. Unfortunately, it can be difficult for many people to know what type of investment is going to work better for them down the road. If you’re currently considering whether to buy a house or invest in stocks, here are some reasons you may want to turn to real estate.
It’s Something You Can See and Control
While investing in the stock market will give you the ability to invest as little or as much as you want, unless you have preferred stock it does not have cash flow. Stocks are something you put your money into and they do not pay you month over month in realized cashflow. To me that is crazy to have all of this locked up money into stocks and cannot even spend a dime of it without selling it and being taxed for a major chunk.
With real estate you pay for it one time and it pays you back month over month for a lifetime. You get the benefit of spendable cash flow to pay the bills, go out to eat, save for a vacation, re-invest, etc.
See the five ways real estate makes you money. Don’t confuse this with the home you live in and own. Many people think their own home is an investment. This is not true…Just ask yourself, how much money does the house I life in make me each month? Answer, it does not make you a dime, you actually pay into your house and hope one day you can get your money back when it’s time to sell or even make a stack of cash. This hope to break even or make money without the cash flow is speculation more than anything else. Again, don’t get me wrong you must live somewhere and, in most cases, it is a better option to own the house you live in than rent.
Still pondering investing in real estate vs stocks?
Saving Money On Tax Breaks
There may be a certain amount of volatility with any market investment, but when it comes to buying a home you also have the benefit of tax breaks that are designed specifically for real estate.
You may have heard that real estate has many tax advantages and of course that is correct. But have you heard of real estate’s biggest tax advantage compared to any other asset or business type? Phantom depreciation of the real estate that you get to deduct form your annual taxes. This means that we can write down depreciation as an expense for tax reasons while the asset is really appreciating! You can spend, keep, or reinvest more of the money earn with this tax differing method.
Still have more concerns about investing in rental property vs stocks?
A Sense Of Security
Many people want to invest in real estate because it offers up a piece of something that they can really own. However, another appealing aspect of having a home is that you’ll be removed from the day-to-day rumblings of the stock market. Investing can make people more than a little weary, even if they’re knowledgeable about the markets, and this can cause people to sell off and lose money when the going gets tough or even worse, not get out when before it’s too late.
With stocks it you need to know when to sell instantly, it’s like a driver that must react quickly to avoid a hazard. With real estate, it’s like a train coming, you can see it coming from a mile away. You have time to prepare and get out of the way before it is too late.
Buy a house or invest in stocks?
It may be a one or the other for you but it could also be both. After reading this article, it might be more apparent why real estate investors put most if not all of their investment money into real estate. If you are still on the fence about investing in rental property vs stocks, I would recommend first investing in real estate and then putting a small percentage of your investment money into stocks or even cryptocurrency. Investing in real estate and the stock market both involve some degree of financial risk. If you’re currently considering getting started investing in real estate, stay tuned into this website at: https://realestatewaypro.com and subscribe to my newsletter.