Any kind of investing is a very personal thing, and there are lots of factors to consider before you dive in. Many first-time investors debate whether they should put their money into stocks or into real estate.
Good question. Let’s explore it.
Stocks will give you liquidity because you’re able to withdraw your money at any time. But there are distinct advantages to sinking your money into real estate, according to The Motley Fool, a multimedia financial-services company that provides financial solutions for investors.
…this is where I’ve put my money.
First of all, with real estate you’re going to have a lot more control over your investment. You can add value to your property through better management, physical improvements and an understanding of the local real estate market. Better yet, you can actually see what you’re investing in. There’s something comforting about walking into a home or commercial property and being able to say, “This is where I’ve put my money.”
Here’s another advantage to real estate investing over stocks – you won’t have to wade through a company’s quarterly earnings reports. That’s important because those statements can get pretty confusing if you aren’t well versed in SEC filings. It’s like trying to decipher Greek.
Another advantage to real estate investing is you can create a steady monthly cash flow and won’t be at the mercy of a volatile stock market. And anyone who listens to the news knows how crazy Wall Street can get.
Are you a “hands-on” kind of person? If not, real estate investing is also a good investment choice. You can hire a property manager to handle most things, although you’ll still want to monitor what he or she is doing in terms of showing your property to its best advantage and making sure that your tenant doesn’t trash the place.
The bottom line is control. When you invest in real estate you’ll simply have more of it. And that’s always good thing!