Investment property generates wealth superior to stocks. Learn how
Investing has long been a favorite avenue for wealth creation. There are countless different types of investments to choose from – bonds, stocks, exchange-traded funds… the list goes on.
If you want to dip your toes into investing, or if you are an existing investor looking to expand your portfolio, you should look at the winning investment that’s hiding in plain sight – your home.
Converting a residential real estate asset into an income property makes the most out of the investment you already have by putting your home to work for you. Passive income, portfolio diversification, and secure returns are just a few of the ways that keeping your home can serve you for years to come.
And yet, many homeowners still choose to sell their homes instead of keeping them.
When you explore the long term implications of real estate vs stocks, it just doesn’t make sense to sell your home. The continual financial benefits of keeping your home make the one-time capital exchange of a sale seem pale in comparison.
Think Twice Before Selling Your Home
Successful investing is all about being able to see the big picture and explore the long term benefits of each strategy and decision… and this means thinking about the situation in 10, 20, 50, and even 100 years.
The fact of the matter is that real estate investments last longer than even your own lifetime.
Land has long been viewed as the best investment because it’s a finite resource. In the words of Mark Twain, “Buy land. They’re not making it anymore”. In the modern market, this translates directly to real estate.
Being a homeowner is an investment that yields equity, appreciation, and lasting returns – and all of this can be passed on to your children. Keeping a property in the family for generations means that all of your time, money, and efforts are directly passed on to your loved ones.
When you sell your home, this is all traded for the single cashout from the sale’s closing. Property owners miss out on all of these time-tested benefits when they choose to let go of their homes.
This perspective on homeownership tips the scales towards keeping your home rather than selling it.
Real Estate vs Stocks
It’s time to rethink what you know about investing.
Now that you know what great results keeping your home can generate, let’s look at why real estate properties stand strong as a market-beating investment even against some of the most popular investing options.
These are 4 ways that residential properties prevail over stocks:
1. Your Home Is The ‘Stock’ You Already Have
Instead of going out and investing in a new stock, you should realize that your home is the prize-money investment that you already have.
You’ve been investing in this asset for years. With every mortgage payment, maintenance bill, the initial down payment, and every other operational expense, the property value has increased.
As the sole homeowner, there’s no direct competition or sharing of funds earned through the property. Unlike stocks, you are the only benefactor – and this alone can exponentially increase the ROI.
Why would you let all of that go? Investing in stocks means starting from scratch, whereas your property investment is already well underway.
2. Real Estate Appreciates
Over time, real estate appreciates while stocks do not. Stocks are liquid and do not steadily increase in value year after year.
On the other hand, real estate investments increase in market value as time goes on. Property owners are involved in a long-term investment process which means that they continually accumulate leverage on their assets.
Appreciation comes on the coattails of the tangible passive income stream generated by owning a rental property.
3. Income Properties Are Less Volatile
Everyone knows that stocks can be risky. Every day stocks shift up and down, meaning that your position is constantly changing based on external factors.
In comparison to the stock market, real estate investing is far less volatile. It’s true that real estate markets are constantly adjusting, but the fluctuations are nowhere near the intensity of stocks.
Real estate is safer, more secure, and less stressful.
#4. Stocks Are Fast-Paced
Due to the fast-paced nature of stocks paired with their incredible liquidity, investors are always shifting between keeping or selling their stocks. In situations like this, investors risk making an emotional decision that they’ll one day regret.
Real estate investing is a slow, passive, and comparably stress-free arena – and when it’s done in partnership with Knox, it’s easier than ever. Property owners can sit back and relax as their home makes money for them, builds value, and remains resilient throughout market shifts.
Streamlined Homeownership the Knox Way
Are you ready to enter the world of seamless homeownership? If so, visit the Knox Financial website to learn more about how we’re transforming the contemporary approach to real estate.