Real Estate Investing vs. Stock Market
In my 23 years as a Real Estate agent I've seen the market crash twice. Once in the 1990's and again recently. Each was caused by a number of reasons with lending practices being blamed as one of those reasons for both. Crashes are typically followed by long term appreciation cycles.
After the 1990's, real estate was viewed more in cycles instead of a steady (although sometimes slow) upward trend. Real estate will always have it's up and downs but overall it has appreciated over the decades. 
In watching a video by Greg Rand about real estate investing, it was really brought into prospective for me. At times people want to put money in the stock market and other times they take it out and invest in real estate.
But which is the better investment?
Having been working in real estate, I understand the value. It's in the leverage and unlike paper money (stock market) it doesn't disappear overnight or go bankrupt. Real estate is real, you can touch it, feel it, live in it and let's face it, everyone needs shelter. Real Estate is a great investment vs. the stock market.
Let's look at it another way. In Greg's video he states "In the past 40 years the stock market has returned 995% whereas Real Estate has returned 978%, That's pretty close. But now let's add in leverage. If you invested $20,000 in the stock market 40 years ago you'd have around $200,000. If you invested in Real estate 40 years ago and put $20,000 down on a home that home would be worth just shy of 1 million dollars and would be paid off.
That's a 4800% gain!
Now, if I may go a step further that Greg's video.......let's assume that real estate investment was an apartment building or maybe 10 single family homes. You also would have collected hundred's of thousands of dollars in rent over the last 40 years! Can you see the difference?
If your thinking about investing in real estate vs the stock market give me a call.
For Real Listings including foreclosures visit my website.
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