Real Estate Investing Vs. The Stock Market

We now have examined a variety of suggestions for bettering your residential home with limited funds, whether it is for your primary property or even a local rental or even investment property. In the research we've stumbled upon a wide range of other terrific resources that we thought might be great for share with you too, for example the article just below. Check this page for additional information on the topic of

This article is the third in my series focusing on the beginnings of my real estate investment experience. In this post, I am providing my perspective on why I chose to invest in real estate instead of the stock market. The stock market seems like gambling to me. It is a lot of fun to watch a stock or a mutual fund go up, but what do you do when it goes down. Particularly when the money you are losing is for your future, not just a few hundred bucks you brought to Vegas for a fun weekend. Watching the performance of the stock market from 2000 to 2010 (the first ten years of my time in the working world, building up a 401k account), resulted in significant disillusionment and worry that the standard advice given in a range of personal finance books and websites (contribute to your 401k, invest in stocks) either wouldn't result in enough money for my retirement or it would, but then some economic problem or market collapse would come along and wipe out a significant portion of my savings in an instant. Count me out. Control over your investment. So why invest in real estate? The primary attraction was the thought that I would have more control over my money and that I would be investing in something physical and tangible (a house) that would retain some measure value while also generating income. When investing in real estate, you are in control of the purchase, maintaining your investment, and growing your investment. Benefit from your income now. Another benefit of real estate investment is the income you make from the property can help improve your income and standard of living now. Income from 401ks and Individual Retirement Accounts (IRAs) cannot be touched until you are 59½ years old. Why should I have to wait 25 years to appreciate some benefit from my investment? With a rental investment property, there is income available now and income available in the future. Maintain the value of your asset. Another key benefit in rental investment property is that the income it provides to you does not impact the underlying value of the asset (in this case the house). Once you retire, you start drawing down on the balance of your 401k or IRA, which then reduces the balance and your potential earnings. For example, earning a 5% return on $500,000 would net you $25,000 a year. If your balance is reduced to $400,000, your gain also reduces a corresponding amount to $20,000. This $5,000 can add up to a significant amount of many over several years. In a real estate investment, you will earn income, but the value of the property, say a $100,000 house, will not lose value due to the income you received from renting the property. It should continue to be worth $100,000 over multiple years.The factors above contributed to my conversion from stock market investor to real estate investor. Is it a significant enough argument for you? That is for you to decide.

Write a comment

Comments: 8
  • #1

    Aethelwine (Tuesday, 04 March 2014 23:22)

    congratulations guys, quality information you have given!!!

  • #2

    Lisha (Tuesday, 04 March 2014 23:32)

    The stuff written in the blogs have allured me!!!

  • #3

    Penny Trate (Wednesday, 12 March 2014 00:29)

    This blog post is really great; the standard stuff of the post is genuinely amazing.

  • #4

    Leak (Saturday, 15 March 2014 00:31)

    If you are being attentive to learn several strategies then you ought to browse this article, I am certain you'll get much additional from this article.

  • #5

    Bernards Real Estate (Monday, 13 October 2014 04:26)

    I have visited lots of the blogs but this blog is truthfully wonderful.

  • #6 (Wednesday, 25 March 2015 01:28)

    You have discusses incredible points that sounds good, keep up the great work.

  • #7

    real estate fort pierce (Tuesday, 16 June 2015 05:20)

    Hi there, I read this fantastic blog on your site. Your entertaining style is amusing, keep it up!

  • #8

    gold ira investment (Saturday, 26 December 2015 01:44)

    Hello, this is fastidious post I actually loved reading this.