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 advantage is that 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 goes 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.

In Summary, The 5 Major Reasons Why Real Estate Investing Beats The Stock Market Are:

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

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

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

4. Real estate investing provides
unique tax advantages.

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

By the way, If you'd like to get very
valuable and genuine properties that are
selling way below their market value,
then do your research or better still give me a call. ☎️ 08188742785

Please share your thoughts. Do you think I left something out?