Email
Translate

Main Content

5 Reasons why you should invest in real estate instead of stocks

When it comes to investments, many are often torn between investing in real estate and stocks. Real estate investments allow you to earn income through the property while stock investments give you a small stake or ownership of the company.

You can invest in both, but if you can only choose one, which asset would you go for? Here are six great reasons why real estate is the better investment option:

  1. There are plenty of ways to invest in real estate

    There is no one way to invest in real estate. You have plenty of options to choose from. You can invest in residential real estate to earn rental income, hold it until it appreciates then sell, or flip the property. If commercial real estate is more to your liking, you can choose between office buildings, retail stores, and warehouses. Like residential real estate, you can keep these and use them, turn them into rental properties, or flip then sell.

    Another great thing about investing in real estate is you don’t have to do it alone. If you’re short on capital or resources, you can join forces with another investor and purchase a property together.

  2. Real estate is a tangible asset

    Unlike stocks, you can physically look at your real estate investment and see what you have purchased. With a real estate investment, you can easily inspect your property and check what needs to be repaired.

    While stocks can fall to zero, real estate, increases in value over time because there is a need for housing and office space.

  3. Real estate is less volatile

    Stocks are known for being very volatile. Its value usually increases or decreases quickly once they are purchased. They are also highly dependent on various market factors and conditions.

    Meanwhile, real estate does not immediately fluctuate or change in price, making it a safer and more stable investment.

  4. Real estate gives you more control

    When you invest in real estate, you have more control over your property and how it is managed. You have the freedom to make decisions that will improve and optimize your property, such as making the necessary home repairs, finding the right tenant, and changing the rental price.

    The same cannot be said for stocks. Unless you have a direct role in the business or company, you have no control over how the management or the business performs.

  5. Real estate has tax advantages

    Investing in real estate also comes with tax advantages. While these tax benefits depend your tax bracket, mortgage interest rate, and cost of repairs, it still gives you an opportunity to lower or write off certain expenses, bills, or payments.

    In California, for example, property owners can deduct a portion of their expenses that went into maintaining and repairing their property. You can also claim a tax deduction if you meet certain qualifications.

If you’re thinking about your first (or next) real estate investment, then California’s Central Valley would be a good place to start. Get in touch with us at Soldavi Realty at 209-975-7653 or info(at)soldavi(dotted)com and we’ll help you find and buy an investment property.

Skip to content