The stock market has long been a go to option for hard working North Americans looking to make their dollars grow, and yet there are many signs which indicate that people are increasingly turning to real estate as an investment alternative. What do you think? Read on…
Why real estate investments are the future
Real estate is pretty much the personification of a tangible, “bricks and mortar” investment; property is a relatively stable and safe investment option in the face of continued global uncertainty. In fact, so long as you invest in property you can afford real estate can offer the kind of returns that lure in savvy investors of all ages and persuasions.
Whilst a large down-payment is generally required in order to get onto this ladder, real estate also has the potential to begin giving you returns at a better level (and sometimes more quickly, depending on where you buy real estate) than the average stock market investment. This is especially the case if you invest in lucrative vacation rentals, retail locations, or multi-family apartments.
Types of real estate investment
There are many ways in which you can invest in real estate; you can go for private residences, vacation home rentals, retail spots, turnkey vacation home rentals, or even buying a real estate investment fund (REIT and FIBRA).
Stocks versus real estate
At first glance it might seem like the stock exchange could provide better investment options, but if you take inflation into account alongside the annual cash flow from a rental property, and consider appreciation you get a clearer view of the pluses of property investment. Especially in the case of appreciation, property can make money just by being what it is; if you invest in a relatively new neighbourhood your property can appreciate quickly when development begins.
These are just some of the reasons why real estate may be considered a better option than the stock market;
- Greater personal control
- Tax Advantages
- Real Estate is a Tangible (Secure) Asset
- Easy Analytics
- It is less Volatile
- You can use it
No matter your age or means, if you’re thinking of investing as a way to make your money grow you should consider investing in property rather than the stock market. Property is largely considered to be a safer, steadier, and more secure way to grow your capital than the stock market.