Real Estate or The Stock Market?

Real Estate or The Stock Market?

Before answering that question, let’s look at the differences:
By definition real estate is a tangible asset and a stock is an investment that represents a share, or partial ownership of a company.

• Stocks are liquid as you can easily buy and sell them compared to real estate where it can take a while to sell a property.
• Stocks can be very cheap compared to real estate. You can start investing in the stock market with very little money down, as low as $ 50, some apps even as low as $ 25. You can start to invest in real estate with little to no money down as well depending on the investment.
• The stock market can be very volatile ( look at pre-pandemic and during pandemic for example)
• With stocks, you can really see the power of compounding interest.

Advantages of investing in the stock market:
Compounding interest
Diversification
Affordable
Stocks with dividends
Capital gains when you sell the stocks high

Advantages of investing in real estate:
Tax benefits
Appreciation from property
Monthly or quaterly cash flow
Equity

Whether you should invest in real estate or the stock market vary vastly on your long term goals, your risk tolerance and your income. Both real estate and the stock market offer great benefits. If your budget allows you too, it might be best to invest in both! 

Caroline Clerisme, DMD

Reminder: Always make sure that you understand what you are investing in and understand that with any investment, there is some degree of risk.

The post is for informational and educational purposes only.  Please consult your financial adviser for appropriate financial advice.