Why Investing in Real Estate Is Better Than the Stock Market

Are you confused about investing in real estate vs. the stock market?

It’s a question that’s on the minds of everyone planning to invest and get good returns. With the market conditions changing often and the COVID-19 pandemic making unprecedented shifts in the market value of various assets, it’s time to give some serious thought to the type of investment you’re making.

Among the various investment options available, stocks and real estate are two of the most common ones.

In this blog, we aren’t going to compare and decide which is the best investment: real estate or the stock market. Instead, we will see why real estate investment is better in various ways compared to the stock market.

Why It Isn’t Best to Invest in the Stock Market?

Investing in the stock market may seem lucrative and easy at first. But, many people have woken up one fine morning to see their stock investments plummeting to the bottom like never before, especially during the coronavirus situation.

The worst part is that you can get totally whipped off your profits as well as your investment due to the unpredictable market movements. You can be left with no retirement funds, education funds, house funds or any other savings if you’re entirely dependent on the stocks for your investment. Here are some more strong reasons why investing in the stock market is a massive risk that not everyone is ready for.

  • During any economic crisis, the stock market can completely crash and you can hit lows that you never knew existed.
  • Let’s assume that there isn’t any economic crisis. Even so, the stocks are volatile and completely based on the particular market and company conditions, seasons, demand & supply, etc.
  • You’ll practically be making an investment that’s totally dependent on someone you don’t even know.
  • Sometimes, you cannot take back your money at any time you want due to the market’s volatility.
  • When you invest in the stock market later in your life, you cannot expect the funds to grow much. 
  • Some companies don’t just grow and keep stagnating in the same position for several years and it would be the same as putting your money dormant in a bank.
  • There are chances of making emotional decisions with your stock market investment and end up losing your money.

Why Should You Choose Investing in Real Estate Over Stocks?

If you’re planning to invest your money, we advise you to consider real estate over stocks for the following reasons:

  • You aren’t prone to market volatility
  • We have taught to invest in a 401k for your education, retirement and other savings. However, no one has taught us about the violent stock market crashes and the huge risks of investing in stocks.

    If you have your money invested in a real estate property, you can pretty much disassociate yourself from anything happening in the stock market.

  • You can create a cash flow at par with inflation
  • If you’re renting out your property, then you can create a decent cash flow that keeps increasing with inflation. The market price for the rental properties rises with the cost of living and so you’ll have access to a decent cash flow regularly even when your money is tied up in an investment.

    However, stocks don’t register an increase with inflation and, instead, depend majorly on the company’s progress.

  • You get a high ROI
  • When you’re investing in the stock market, you don’t put all your eggs in the same basket. So, as you spread your investment among multiple stocks, there are high chances of one making a good profit, which is compensated by another stock bringing in huge losses.

    Comparatively, real estate has a high return on investment and these anomalies of fluctuations aren’t as high as the stock market. Depending on the property’s geographical location, size, surroundings, and features, you can buy a residential or commercial property for sale at low rates and sell when the market value is at the peak.

  • You can enjoy the depreciation of your tax credit
  • Depreciating the value of your property doesn’t actually mean that it has lost value. In fact, we know that the value goes up and not down in the real estate market.

    So, depreciating a tax credit lowers your total tax that sums up to a considerable amount. This depreciation is on top of the maintenance of the property and the additional costs that can be managed from the rental income.

  • You don’t open yourself to high risk
  • Stock markets aren’t for those who want to keep it safe. You’ve to be ready to face the loss of your profits as well as your investment. You’ve to be prepared to risk it all to get the profit.

    On the other hand, real estate investment doesn’t have such a huge degree of risk. You can save yourself from emotional buying and selling, which are commonly found in the stock market. Your property value increases with inflation and if you hold it against the ups and downs and make a sale at the right time, you can reap huge profits.

    Explore Investing in the Real Estate Market of Corpus Christi

    If you analyze the real estate in Corpus Christi over the last few decades, you can notice a steady increase in the market value. There are many residential properties and commercial land for sale in Corpus Christi that bring high ROI at minimum risk. 

    Are you searching for good real estate property to invest in Corpus Christi?

    Cobb-Lundquist & Atnip, Inc. the commercial real estate firm is one of the oldest real estate companies in Corpus Christi, with over 77 years of market experience. You can imagine the amount of work we’ve put in to help individuals and companies secure high ROI properties in the location!

    As one of the expert real estate companies in Corpus Christi, our guidance and vast knowledge about the location will be very useful for those looking to invest in the commercial market. Call us now at (361) 854-4448 to get your questions about real estate investment answered.