Real estate Vs Market

[Ariana]

My dad knows I invest in the stock market. He argues that single-family rental properties beat any investment except a successful business. In the stock market, I might wait 30 years to reach a million in retirement. In real estate, I build equity, home appreciation, and rental income. Though it takes time to pay off homes, they can pay each other off faster, like the debt snowball.

I get the concerns about maintenance, taxes, and vacancies. Dad owns 7 rental houses and rarely struggles with renters; they cover most costs. Fixing issues ensures long-term stability.

So, what’s better? Investing in rental properties or the stock market? What does the math say?

[Austin]

If you’re in stocks, you don’t really need to do much. But owning a rental property? That’s a lot of work.

[nelly]

There’s no single answer. Real estate offers potential for high returns, but comes with maintenance, vacancies, and less flexibility. Stocks are easier to manage but can be volatile.

Consider a mix. Invest in the stock market for long-term growth, and if you’re up for it, use some funds for a rental property down payment. This way you get some of both worlds

[Porady]

@Ariana

My dad knows I invest in the stock market. He argues that single-family rental properties beat any investment except a successful business. In the stock market, I might wait 30 years to reach a million in retirement. In real estate, I build equity, home appreciation, and rental income. Though it takes time to pay off homes, they can pay each other off faster, like the debt snowball.

I get the concerns about maintenance, taxes, and vacancies. Dad owns 7 rental houses and rarely struggles with renters; they cover most costs. Fixing issues ensures long-term stability.

So, what’s better? Investing in rental properties or the stock market? What does the math say?

Your Dad loves rental properties, but hold on! Stocks might be faster than you think (historical returns around 8% can grow money well).

Rental properties have their perks (equity, income), but also require work (maintenance, vacancies, taxes) and are less flexible than stocks.

There’s no single winner! It depends on you (risk tolerance, time for management).

Maybe both? Invest in stocks and consider a REIT (real estate investment trust) for some real estate action.

Talk to a financial advisor to find the best mix for you!

[marylynn]

Investing in stocks involves purchasing a small portion of a company and waiting for those shares to increase in value, whereas investing in real estate involves purchasing properties and renting them out or purchasing REITs (real estate investment trusts). This is the primary distinction between investing in stocks and real estate.