If you are around investors for very long, there is a good chance that you will encounter the debate about whether real estate vs stocks are the better investment. The truth is, If you are looking to build an investment portfolio that can increase your wealth – both have the potential to make that happen.
Lately, the housing market has been soaring, leading many investors to inquire about the health and wealth that real estate investment portfolios can provide. The stock market has been doing well, too. For some investors, the returns have been great – especially in the post-pandemic climate.
If you have saved some money and would like to invest it, which should you choose? Real estate vs stocks? Let’s take a look at the pros and cons of each to help you decide the best way to invest based on the strategy that is right for you.
Real estate investing is not a one-size-fits-all type of deal. It can come in many forms, with two of the most popular being to flip it (buy a property, renovate it, and then resell it for a higher price to make a profit) or to rent it out to tenants. It’s an effective way to grow your wealth over time – especially when it comes to rental property. Many use it as a form of passive income for years to come. Though real estate or rental property investment comes with a lot of benefits, it isn’t without its challenges.
Investing in the stock market means purchasing shares in a company. All different industries are represented in the stock market, allowing you to choose those that you think are on the rise so that you can make the most money, there are so many options that analyzing, researching, and strategizing are all important before making that purchase.
Some people find almost instant success in the stock market, but others spend a lifetime just trying to make that big win. If you have a strategy and you know what you are doing, then you may very well succeed in stocks. Though it only takes one bad move to lose it all.
When it comes to real estate vs stocks, both can be beneficial investments – and they both can help you grow financially and diversify your portfolio. But if you are looking to generate long-term wealth, then you need to consider investing in property. In other words, a rental property (or several) will allow you to receive an income from that property for as long as you don’t have a vacancy. This method of investment is of lower risk and brings with it more stability in the long run. Plus, it comes with all of these benefits:
One thing that should always be considered when opting for rental property investment is a professional property management team. Many investors do their research and develop strategies for investing – and even score some really great and desirable property. What happens, however, is that they either don’t know how to care for it or don’t have the time to do so. Rental property may be passive income, but it is only truly passive if you have property managers handling the day-to-day processes.
Routine maintenance, repairs, inspections, rent collection, finding high-quality tenants, addressing any concerns or issues, and so forth are all part of your job description as a landlord. But they can be handed over to an experienced professional. As the title suggests, a property manager is an expert at managing property. They handle all aspects of rental properties so that you can continue to work on growing your portfolio and focusing on investments without having to handle the little things.
No matter where you are in your investment journey, you need to take some time to determine which option is best for you and your family. And, there is a good chance that you will discover that real estate is the most feasible option for your portfolio now – and in the future. Ready to get started? Contact RPM Evolve today.