One of the best ways to stay ahead of the curve financially is to make good investments. A common debate among investors is which investment is better: stocks or real estate. It turns out that both can be excellent and many investors have some of each in their portfolios.
Real Estate Investing: Pros and Cons
Many folks favor real estate for investment profit because it provides real and tangible assets for your investment dollars. You can invest in real estate with other peoples’ money, can use it as a tax shelter, and can receive passive income from it. Additionally, it can serve as a hedge against inflation.
Some of the best ways to invest in real estate include:
- Investing in rental properties
- Purchasing shares of real estate investment trusts (REITs)
- Fixing and flipping properties, and
- Participating in a real estate rental group (REIGs)
On the other hand, some real estate investments can take a lot of time to find and fund. Real property tends to be expensive and is relatively illiquid. In some cases, high transaction fees may be involved.
Stock Investing: Pros and Cons
Stocks, representing equity ownership in publicly traded companies, can produce excellent investment profit. Stocks provide a number of positive benefits for investors. These include relative liquidity, ease of diversification, and relatively low cost of initial inventment. These days, many stocks can be bought commission-free.
On the downside, investors must be prepared for volatility when investing in the stock market. A bear market situation, often catalyzed by rising interest rates, can rapidly erode the value of a stock portfolio.
Partner With Dorra Financial Group
Many investors look to participate in both asset classes to achieve high investment profit. Look to Dorra Financial Group should you need financing for real estate investments. They will help you select the right option that fits your needs perfectly.