Back to top
Investing in Real Estate Over the Stock Market

5 Benefits of Investing in Real Estate Over the Stock Market

While buying stocks is traditionally how many investors make use of their finances, investing money in the stock market can be a risky move. What many people don’t realize is that real estate is also a viable and profitable investment option. When done properly, investing in real estate over the stock market can offer more stability, better returns, and a more diverse investment portfolio. 

Before taking the leap into real estate investing, however, it’s important to understand its advantages and how it can help you grow your overall net worth. Below, we’re breaking down five key benefits of investing in real estate over the stock market. 

You Have 100% Control

As we said, the stock market can present major risks to your investment portfolio. You never truly know which way the market is going to go on any given day. On the other hand, buying real estate gives you full ownership of your investment, meaning you have 100% control in the situation. Some risks to keep in mind as someone who owns real estate are handling repair fees and managing rentals, but the opportunity to control your investments easily outweighs these costs.

You Have Mortgage Interest

When you put money down on an investment property, one of the key advantages is that you’ll gain mortgage interest. This interstate rate is tax deductible, and therefore may save you more than investing your finances in the stock market. Plus, the income made from rent payments can be expected to cover the mortgage payments, insurance, and property repairs as well.  

You Have Depreciation 

Another way that real estate investments can help you make the most out of your tax return is through depreciation. The reduction in value of your property assets over time can also lower your taxes come April. How does this work? Well, as a real estate investor and owner, you can write off the wear and tear of your investment properties. 

You Make Passive Income Over Time

While the real estate market is not nearly as liquid as the stock market, real estate offers the opportunity to receive long-term cash flow. This equates to a passive income and the promise of appreciation in the future, which refers to the rise in value of your property over time. So you can write off the depreciation and reap the benefits of appreciation in the market as time passes. It’s a win-win. 

You Take Less Risk With Debt 

Margin trading, or investing in the stock market with debt, is an incredibly risky decision. However, when you choose to invest in real estate, you can invest in a new property with a 20% or less down payment and finance the remaining property costs through mortgage payments. 

The bottom line is that the lesser-known market of real estate investing is one that you should be taking advantage of ASAP. From having control over your investments to having the comfort of more risk-free money management, real estate is something you don’t want to miss out on. To learn more about the benefits of real estate investments, click here to watch the Q&A series video with Scotty Mitchell.

Post a Comment