Investment Strategies 5 Advantages of Real Estate Property Investment Over Stock Investment by Eman Hamed April 18, 2018March 24, 2022 by Eman Hamed April 18, 2018March 24, 2022 To this day, property investment remains the best and safest way to invest money! Investing in a real estate property comes with numerous advantages that set it apart from other types of investments, such as stock investment. Here are 5 major advantages of owning a property investment and starting a real estate investing career over investing in stock. Watch out video below to find out the differences between investing in real estate vs investing in stocks: 5 Benefits of Property Investment Over Stock Investment Full Control The minute you buy a rental property, you’ll have full control over the investment! You’re free to decide which type of investment property to buy (single-family home, multi-family home, condo, etc.) and which investment property financing method to go for (cash, mortgage loan, private money, hard money, etc.). In addition, property investors get to set how much to charge for rent, whom to rent the investment property out to, and when to sell the property investment. Click here to start searching and analyzing investment properties in any state, city, and neighborhood across the US! Cash Flow Every investor is driven by the same motivation – to make money! Your investment has to give you a return on investment (ROI) which you can either save or reinvest. First of all, there are many ways to make money in real estate. Moreover, a investing in real estate properties provides real estate investors with a stream of cash flow in the form of monthly rent. Cash flow is an attractive aspect of real estate investing, and it’s usually a sign of a successful property investment. Cash flow covers the property investor’s expenses such as mortgage payments, property taxes, operation costs, etc. and yields a higher return on investment! The key, of course, is buying positive cash flow investment properties. Related: How to Invest in Positive Cash Flow Real Estate Properties? Fewer Risks Property investment has fewer risks than other types of investment, say stocks, especially when investing in real estate for the long term. The longer you hold investment properties, the fewer risks of loss you’ll face because home prices and equity build with time. In addition, investing in real estate will always have value since they are physical assets, unlike a stock investment which could drop down in value any minute. Tax Benefits/Deductions Investment in property also offers many tax benefits and deductions. For example, the cash flow from an investment property is tax-free. Additionally, property investors are able to deduct almost all expenses related to owning and managing an investment property, including property taxes, mortgage interests, insurance, and operation expenses. Not only that, but when property investors sell the property investment and reinvest the profits, they will not pay capital gains tax. Related: What You Need to Know About Real Estate Taxes as an Investor Hedge Against Inflation Historically, cash flow and investment property prices have kept pace with inflation. This means that as the cost of living increases so do investment properties prices. This benefits real estate investors on three levels: As inflation increases, property investors can raise the amount they charge for rent. The value of investment properties goes up enough to cover for inflation. Mortgage payments are not affected by inflation, meaning their absolute value decreases with inflation. Therefore, with a property investment, inflation will be on your side. Conclusion: Property Investment vs. Stock Investment Owning a property investment definitely comes with many advantages. This is why we at Mashvisor recommend investors to start a real estate investing career. Mashvisor offers real estate investors the best investing tools to help them find and analyze investment properties in the US real estate market. To explore this topic in more details, read Real Estate Investment vs. Stock Investment. To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Cash FlowLong-Term StrategyReal Estate VideosTax Benefits 0 FacebookTwitterGoogle +PinterestLinkedin Eman Hamed Eman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post The Best Cities to Invest in Rental Properties 2018 Next Post How to Boost Your Real Estate Investor IQ Related Posts Why do new investors fail at real estate wholesaling? Three Passive Investment Strategies for Investing in Real Estate How to Start a Real Estate Business With Zero Experience in the Field These Are the Hottest Real Estate Markets for Investing in Vacation Home Rentals in 2018 8 Signs a Fixer Upper Investment Property Is Not a Safe Investment 8 Best Practices for Flipping Homes for Maximum Returns on Investment Why Switching to Commercial Real Estate Investing Is Smart What’s the best way to invest 10000 dollars? In real estate, of course! Vacation Home Rentals: The Future of Real Estate Investing How to Make Money in Real Estate in Your Twenties Is Airbnb Orlando a Good Real Estate Investing Market in 2018? Is Buying a Condo a Good Real Estate Investment? 1 Comment BC Global Investments, LLC March 2, 2020 - 8:35 am @bcglobalinvestmentsllc:disqus Really amazing information shared by you.It really help us to understand the concept of investment. Know more about investment @ BC Global Investments, LLC Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.