Why Real Estate Could Be a Better Investment Than Stocks
Once you're on track with your financial goals
– such as retirement contributions or repaying student loan debt – you
may find yourself exploring real estate investments in lieu of the stock
market. Buying real estate as an investment can be lucrative, but it's
also cash-intensive and carries risks.
As you weigh your options, consider the following points in your analysis.
Risk versus expected returns. Whether putting cash into the market or purchasing real estate, you need to assess the risk versus the expected returns.
Traditional equity investments are much easier to analyze in this way.
You have historical data, and although past performance is not
indicative of future results, you have a bit more control over how much
risk you're exposed to when deciding what amount to invest, the asset
allocation and so on. Investing in single stocks versus an index fund is
a calculated risk some are willing to take in search of higher expected
returns.
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