Real estate investment is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax advantages and leverage real estate to build your wealth. There’s always debate when it comes to pinning down one best investment strategy. Our view is pretty simple, real estate investing is one of the best investment strategy
Real estate provides better returns than the stock market without as much volatility.
Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
Here is what Jaapreet Singh, a YouTuber has to say about real estate investment.
When I invest, I like to plan for the worst case scenario.
If this worst case scenario is something I’m okay with, I’ll consider investing.
With real estate, you own a physical asset. So even if the market tanks and you lose all of your tenants – you still own something you can see and feel.
That’s a good thing in a bad scenario.
That means even if everything goes wrong, your investment should still have intrinsic value (as long as you don’t have too much debt).
You can’t say the same about stock market investing.
If a company you invest in goes under (meaning goes bankrupt), your stock will go to $0 and you’re entire investment will be wiped out.
Plus you have no control over your investment.
Of course, like I said in my last email, both real estate investing and stock market investing have their own pros and cons (which is why I invest in both) – but this is why I like real estate investing.
With real estate investing, I can control and manage my investments. And I own a physical asset that I can see, touch and feel.
If you’re interested in learning more, we just released a video on 6 Things You Need To Know Before You Start Investing In Real Estate and you can watch it on YouTube.
But I’d like to know your thoughts, leave me a comment on the video telling me if you prefer real estate investing over stock market investing