Real estate vs. stocks: Why property investment is the better alternative

The RPM Evolve blog

Real estate vs. stocks: Why property investment is the better alternative

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.

Investing in Real Estate vs Stocks (Property vs Paper)

Investing in Property Assets

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.


  • Real estate investment is a low-risk investment strategy.
  • A property retains value (even when the stock market crashes).
  • You can always tweak properties by adding an upgrade, or the like, to increase their value. When you do this, you can often take steps to then increase your income.
  • There are many tax benefits of owning rental property.


  • You may have to borrow money to buy your property – which means you also have to pay it back. This can reduce the amount of profit you could make.
  • You are responsible for maintenance, repairs, property taxes, etc. Which can also reduce your profit.

Investing in Paper Assets

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.


  • Ability to diversify your portfolio thanks to so many businesses in so many industries in the stock market.
  • The stock market is available most days of the week.
  • Certain types of stocks have a bigger impact on your wallet, such as high-dividend stocks.


  • The stock market is a high-risk investment. You could earn a ton today and lose it all again tomorrow.
  • The need for a deep understanding of the stock market and how to analyze potential investments.

Why Real Estate Is Safer and More Profitable Investment

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:

  • Ability to add value. You can add value to your rental property. By doing so, you can make it more attractive and increase its value. When it is seen as more desirable, potential tenants are often more likely to pay a premium rental fee. And that means more money in your pocket.
  • Insurable. You cannot protect your stock market investment as it is an intangible investment. However, with your rental property, you can insure it so that if something happens to your tangible asset, you have some sort of cushion. You will not suffer a huge loss.
  • Financing. If you ever tried to take out a loan for stock market investment, then you know that just doesn’t happen. You can, however, take out a loan to buy a rental property as an investment. In fact, it is a really common thing to do.

How a Property Management Team Can Help

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.

Need management?
We are the complete property management solution for the serious investor
Free Property Analysis
(602) 368-5730

Get your free property analysis

Let us help you determine how to maximize the value of your rental property
Boost your monthly income
Explore tailored solutions to meet your individual needs
Market analysis and rent comps unique to your property
Discuss improvements that can be made to rent your home at its highest value and attract more tenants

Featured in