There have been a lot of debate between real estate and stocks. Some professionals would tell you that the stock market is better, while some other professionals would tell you that real estate investing is better.

I know I'm about to raise "eyebrows" and "shake some tables", but at the end, I believe you would have gained some very useful information.

Now before I go into the 5 major reasons why real estate investing beats the stock market.... I'd like to point out one major advantage of the stock market over real estate investing.

And that's stocks can be easily liquidated unlike real estate properties. What this means is that you can easily trade your stocks in the case of an emergency.

So with that being said, here are 5 major reasons why real estate investing beats the stock market.

1. Real estate investments provide cash flow and can be a hedge against inflation.

What’s nice about rental income is that your cash flow keeps pace with inflation. The market price for rental properties automatically rises as the cost of living increases.

You can also cash in big by buying a distressed or foreclosed property below the market value, fix it up, and sell it a few months later for a much higher price.

Either way, investment properties can provide cash and a hedge against inflation.

2. Real estate is a market where you can buy low and sell high.

We all know money is made in the stock market by buying low and selling high. But it is nearly impossible for most investors to do so consistently. You can’t possibly know enough about an individual company, its sector, management, competitors, etc. And institutional buyers will always have more leverage and know more than you as an individual investor.

Contrast that with residential real estate where you are dealing with individual properties and each one is different in location, size, features and other criteria. There is no set market for the exact property you are considering.

In the stock market, anomalies are quickly adjusted for by other investors. In the real estate market, there are thousands of little markets. You can always find deals and “buy low.”

There are strategies where you can buy low and sell for a high price once you have rehabbed a house. And there are geographical pockets in just about any real estate market where you can “sell high” if you know the type of housing that is in high demand

3. Real estate investors can use leverage to build wealth.

Putting $25,000 into stocks buys you $25,000 worth of stocks in value(no leverage). Conversely, the same investment in real estate could buy $125,000 in property.
You are controlling an income-producing asset worth more than three times your cash investment. You are earning rent from a $125,000 property when all you invested was $25,000. Now that's what I call leverage.

4. Real estate investing provides unique tax advantages.

Real estate investing comes with numerous tax benefits.

You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value) and other tax benefits.

5. Actively managed real estate provides better returns and lower risk than stock market investing.

Stock market values go up and down. Individual investors tend to buy and sell at precisely the wrong times. That wipes out possible gains in an already efficient market where bargains are sparse.

On the other hand, real estate is nearly immune to emotional buying and selling. As a less liquid investment, panic selling is impossible. You have more facts to make a better investment choice initially when you buy properties.

And the long-term nature of real estate assets ensures that you hold on through ups and downs. All the while, rents and property prices rise due to inflation.

In general, your risk of loss goes down the longer you hold real estate investments. Your equity builds and home/property prices rise over time. That is unlike the stock market, where the risk typically stays the same.

Someone once told me that the successful people in life are the ones who make quick decisions based on a good information. You have been informed. What decision are you planning to take?  If you feel I can help you make the right decision, then just give me a call @ 08188742785. If I'm busy, just call again.