Reasons to Choose Real Estate as an Investment Over Stocks

Real EstateWhy choose real estate as an investment rather than stocks?

Well, how much risk can you afford right now? One of the reasons people like to invest in real estate is because the right property in the right spot at the right time can yield huge profits. Therefore, investing in a $50,000 piece of land that ends up selling for $500,000 “down the line” can be quite lucrative. Whether that land is used for drilling purposes, a cell phone tower, or for the parking lot for a new office building, the result is a positive one: you, the investor, make money! If you were to take a look at who the wealthiest people are in your town, successful real estate investors would be listed among the lawyers, doctors and politicians.

Real Estate as Investments

With real estate investments, the outlay is usually more money than it takes to purchase stock shares, but the rewards can end up being much bigger. Think of a casino… the person who plays the slot machines puts quarters in and may walk away winning $50 at the end of the day. That’s like the stock market. Then there are those who play table games where they may have to use several $20 or $50 bills to end up winning $5,000 if all goes well. That’d be like the real estate market.

Besides the ability to make a lot of money, real estate investments are often popular because of their tax benefits. For instance, as a landlord the interest expense on your mortgage is tax deductible. Furthermore, you can deduct operating expenses, property taxes, insurance and depreciation. Meanwhile, over time, real estate investments can act as a hedge against inflation. In addition, mortgage payments don’t increase with inflation. With stock investments, you typically get more tax consequences than benefits. For instance, when you sell stock and make a profit you’re subject to pay a capital gains tax.

If you’re thinking of investing in real estate, consider Mortgage Man. As a trusted private lending firm that works exclusively with real estate investors, Mortgage Man has the expertise to help you work toward profitable deals. Contact Mortgage Man at 502-400-3011 or email mike@mortgagemanfunding.com.

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