Why I think you should invest in both stocks and real estate.
In the property management business, I work with a lot of investors. One of the most common questions they ask me is, “Should I invest in stocks or real estate?” I think you should invest in both, and today I want to go over why.
Both stocks and real estate are great long-term investments. The barrier to entry into the stock market is lower; you usually only need $200 or $300 to get started. However, real estate offers one benefit that stocks can’t: consistent cash flow.
There are pros and cons to both stocks and real estate.
If you own rental properties, you’ll receive a steady income of cash every month. When it comes to investments, cash is king, but the perks of owning real estate don’t end there. You also own an appreciating asset, plus you can take advantage of the tax benefits of homeownership.
When the economy is doing well, stocks are difficult to beat. However, if things go south, real estate is a much more secure investment. We haven’t seen homes depreciate since 2007, and in San Antonio, the crash didn’t affect our prices as much as other areas.
At the end of the day, stocks have a low barrier to entry and potential for high gains, but real estate offers more security while sporting a similar yield. If you have any questions about today’s topic, please call or email me. I’d love to help.