How The Real Estate Vs. Stock Market Argument Pans Out
Written by: Adiel Gorel
Real Estate Investing Is as American as Apple Pie and Baseball Real estate or stock market investing? What is the better option? Which investment will fetch you better returns while keeping your money safe and financial future secure? Certainly, stocks can be a good option, but buying and selling requires insight, acumen, a degree of […]
Published onDecember 24, 2023
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Est. Reading: 3 minutes
Real Estate Investing Is as American as Apple Pie and Baseball
Real estate or stock market investing? What is the better option? Which investment will fetch you better returns while keeping your money safe and financial future secure? Certainly, stocks can be a good option, but buying and selling requires insight, acumen, a degree of expertise, and a significant amount of time. Real estate investing is significantly simpler and a whole lot less time-consuming. You could say that as a realtor, I am probably biased and bound to say so, but permit me to explain…
How you buy real estate or stocks.
When you buy stocks, you typically pay cash for the purchase. While you can leverage the stock or buy on the margin, this is fraught with peril and is best avoided. So you pay cash for your investment, wait for the stock to go up, and then you sell. The percentage the stock rose is your profit. This is great. Now, contrast this to when you buy a home. You pay just about 20% as the downpayment, and that wonderful gift, the 30-year loan, finances the rest.
To cut a long story short, there is no real risk in real estate investing. Even if your home's value does not skyrocket, it is still most likely to keep up with inflation. If the value of the home doesn’t rise as anticipated, you can just wait it out. You can afford to. Meanwhile, it fetches you a passive income in the form of rent. And remember, a home is always going to be a valuable asset. It will not plummet the way some stock prices may.
Real estate vs. stock market – Which is the American dream?
If you're comparing stocks and real estate investing, the latter is a safer, more reliable bet. – Adiel Gorel
When we speak of the American dream, what do we picture? We think about a beautiful home with a garden and a yard with a hoop, maybe a picket fence. Kids riding their bikes along a leafy road. We think about safe, peaceful neighborhoods in the prosperous suburbs of our bustling commercial centers. Kids on a swing set, a happy dog, a big car in the driveway, all these revolve around that home. So, really, there is no investment that better personifies the American Dream than buying high-quality single-family homes in the larger metropolitan areas.
People are always going to need shelter. Homes are always going to be in demand. There are always going to be people who need rental homes. This is why real estate investing is always a sound investment. Houses are stable, and there is never a margin call. You can use the 30-year loan to slowly and steadily build wealth for yourself.
I'm not saying don't invest in the stock market, but don't invest only in the stock market. Diversify. Consider the many reasons to invest in real estate: great returns on a strong, secure investment. To know more about real estate or stock market investing, sign up for our upcoming quarterly property expo. It is free –sign up today!
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
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