The real estate vs. stock market debate is OVER. That’s right, after a conclusive study conducted by our own VP of Data and Analytics, Dave Meyer, we’ve found the real difference in returns between the stock market and real estate investing. And at first, you might think that these two types of investments end up being pretty close in terms of profit. For the most part, stock investors don’t care to venture into the active world of real estate, and vice versa. But what if we told you the difference was HUGE? We’re talking DOUBLE the returns in one over the other. You might say, “Hey, isn’t this a real estate investing channel? We know your answer!” Think again. We’ve got the raw data pitting rental properties against the S&P 500, everyone’s favorite index fund, to see whether investing in the S&P, a rental property, or a primary residence comes out on top. Adding all the factors together, the winner could have you changing your investment strategy quite quickly. Which investment would you choose? Are passive stocks more your thing, or are physical properties worth the active investment? Let us know in the comments below! ~~~~ Join BiggerPockets for FREE 👇 ~~~~ Find an Investor-Friendly Agent in Your Area: ~~~~ Find Investor-Friendly Lenders: ~~~~ Listen to The “On The Market” Podcast Wherever You Listen to Podcasts: Spotify: Apple Podcasts: BiggerPockets: ~~~~ Watch Dave on the “On The Market” YouTube Channel: ~~~~ Real Estate vs. Stocks: Which Makes MORE In a RECESSION? ~~~~ Real Estate Vs. Stocks: What 145 Years Of Returns Tells Us: ~~~~ With High Inflation, Should You Consider Passive Real Estate Investing Over Stocks and Bonds? ~~~~ 4 Key Ways to Build Wealth in Real Estate: ~~~~ Connect with Dave on BiggerPockets: ~~~~ Follow Dave on Instagram: @thedatadeli or 00:00 Real Estate vs. Stocks 00:32 Surprising New Calculations 06:23 Make 2x The Return! 10:12 2023 Update 10:58 The Big Winner...(read more)
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The debate between investing in real estate or the stock market has raged on for decades. Each side has its loyalists who swear by the benefits of their preferred investment vehicle. However, recent data has provided clear evidence that the real estate vs. stock debate is over, and it's not even close. Real estate has long been touted as a safe and secure investment. It's tangible, and there will always be a need for housing and commercial property. However, while real estate has historically been a reliable investment, it comes with significant drawbacks. One of the most significant disadvantages is the high cost of entry. Most people do not have the capital to purchase a property outright, meaning they must take out a mortgage. This creates a significant amount of debt, which carries risk. Additionally, real estate is not very liquid. It takes time to sell a house or commercial property, and there are significant transaction costs associated with the sale. Furthermore, real estate investors typically incur higher management and maintenance costs than stock investors, which eats into their profits. Stock investing, on the other hand, has long been considered a riskier, but potentially more profitable investment. Stocks are liquid and easy to buy and sell, making them a more flexible investment vehicle. Additionally, stocks have historically offered higher returns than real estate. However, recent data has revealed that stock investing is not only more profitable than real estate, but it's also less risky. A study by the finance department at Florida Atlantic University found that since 1926, the average annual return on the stock market has been 9.8%, compared to real estate's 5.5%. Furthermore, stocks have had less volatility than real estate, with fewer instances of significant declines. Perhaps the most compelling reason to choose stocks over real estate is the ease of diversification. It's relatively simple to build a diversified stock portfolio that includes a mix of sectors and geographies, reducing overall risk. Diversification is much more challenging with real estate, which requires a significant amount of capital to invest in a variety of properties. In conclusion, the debate over whether to invest in real estate or the stock market is over. Recent data has shown that stock investing is more profitable, less risky, and more flexible than real estate. While real estate may still have a place in some investors' portfolios, the returns and diversification opportunities available through the stock market cannot be ignored. https://inflationprotection.org/the-dispute-between-real-estate-and-stock-comes-to-an-end-with-a-clear-winner/?feed_id=101494&_unique_id=64711566af5b4 #Inflation #Retirement #GoldIRA #Wealth #Investing #biggerpockets #GetRich #howtoinvestinstocks #howtoinvestinthestockmarket #Howtostartinvesting #indexfundinvesting #InvestinRealEstate #investinrealestateorstocks #investinstocks #investinginrealestate #investinginrealestatevsstocks #realestate #realestateinvesting #realestateinvestingforbeginners #realestateorstocks #realestatevsstockmarket #SP500 #startinvesting #stockinvesting #stocksorrealestate #stocksvsrealestate #InvestDuringInflation #biggerpockets #GetRich #howtoinvestinstocks #howtoinvestinthestockmarket #Howtostartinvesting #indexfundinvesting #InvestinRealEstate #investinrealestateorstocks #investinstocks #investinginrealestate #investinginrealestatevsstocks #realestate #realestateinvesting #realestateinvestingforbeginners #realestateorstocks #realestatevsstockmarket #SP500 #startinvesting #stockinvesting #stocksorrealestate #stocksvsrealestate
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