Stock Investing Vs Real Estate Investing Profits
Both stock investing and real estate investing have the same basic financial objectives. People invest money in both to make money from growth and or income. Growth through price appreciation (increase in value or market price) is where you really make money, the big bucks. Here we compare the two investment options in terms of profitability and other factors. Let's talk about a $20,000 out-of-pocket 10-year investment in both investment options investing by traditional standards ... like it has normally been done throughout the past 50 or so years. No unusual economic circumstances, no HEAVY leverage (borrowed money) involved. Now let's look at both investment options. Stock investing: The stock investment is $20,000 invested in a no-load S&P 500 Index fund which tracks the performance of the stockmarket . Over the long term the stock market has returned 10% a year. This is our assumed return, plain and simple. Real estate investing : Here you buy a house i...