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Why investing in real estate is better than stocks

Why investing in real estate is better than stocks

It is always considered ideal to invest your money instead of saving it aside. Savings won’t let your money grow but investing it somewhere will surely increase its value. Although the risk is involved in investing and this might reduce its value, going for long-term investment always helps. Usually, people invest in stocks, but lately, people have also started investing in real estate. Investor, entrepreneur and CEO of Mortgage Now Inc. Jim Marchese, has decades of experience in earning profits through the real estate market. He is great is advising the investors to decide whether to invest in stocks or real estate, seeing their prospects. 

If we talk about stocks, they sometimes turn out to be unpredictable even in the long run, but real estate is always appreciated in the long run. There is hardly any case in which the value of real-estate depreciated in the long run. While investing in real estate, you can rent it out through which you will make a stable income every month. Stocks can be risky and can be uncertain many times. Paper investments can undoubtedly be profitable, but a single wrong move will sink the company which will lead to an unexpected financial setback. Although, know that there might be an exception in your case as you may earn high returns on stock investment rather than investment in real estate. But no one can guess the unpredictability like Covid, the stock market suffered a lot. Such scenarios make real-estate a better platform to invest in. Even if the value depreciates in the short run, you will see a good response once the economy gets better.

To know better, the following are the points which will help you to know why investing in real estate is better than stocks:

  • Returns– Investing in the stock market makes sense when it boosts your returns,but these benefits increase to an extent and are not always available. Also, the returns are unpredictable and are often expected less. But in real estate, the returns are predictable, and it is always to get an appreciated value of the property in the long run.
  • Unpredictability– Investing in stocks can be unpredictable at times and especially in uncalled situations like covid. Also, a wrong move of the company can sink everyone which leads to irreversible consequences. On the other hand, in real estate, you can earn a good return by renting your property out. That means, also in an uncertain situation, you will be able to make something out of it.
  • Tax benefits– Investing in real estate will get you to avail the benefit of tax breaks which include mortgage interest rate tax breaks, credit for paying property tax, tax benefit on private mortgage insurance which is required to get a mortgage loan.

Also, if we listen to Jim Marchese, he always emphasizes buying a two-family house, so that one can be rented out. The interest can be paid from that rent received, so it will not lead to extra costs. In short, real-estate investments are more stable, great for the long-term and are undoubtedly more profitable than paper investments i.e., stocks.

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