The idea of becoming an investor is appealing to everyone. There are a lot of ways you can invest your money: from real estate to stocks, bonds, certified deposits (CDs) and even gold. With that said, it is too easy for an investor to become overburdened with the information out there. While some people like taking risks and placing their money in someone else’s hands, others look to play safe and look at the results in the long run.
Over past decades, real estate has held its ground and helped many people achieve financial freedom. To help you understand better, here is a comparison of real estate with other investment opportunities.
Real Estate Vs Stocks
Stocks are considered as a good option for investing money, as the stock owners enjoys increased value and cash dividends over-time. If the company makes profits, the investors in turn, rejoice. By investing in stocks, investors look to expand their portfolio and diversify to spread out their capital investment and lessen the overall risk.
The most significant disadvantage of stocks is that they are highly unpredictable. The price of a stock can fluctuate dramatically at any time! Watching profits grow and shrink within minutes, is not every investor’s cup of tea. In comparison to stocks, real estate investment is considered stable as the market holds firm until a global economic downturn happens.
Real Estate Vs Bonds
As an investor, you can work with corporate, municipal, and government bonds. You get to earn revenue form bonds through interest as they mature. These are low-risk investments, and only the rate of interest might fluctuate.
Despite being low risk, bonds don’t offer much in terms of profitability as compared to other investments. Another drawback of investing in bonds is that they are taxed at the federal level and offer zero tax break. In real estate, you are in more control, get to make decisions and defer taxes because of the government’s policies.
Real Estate Vs CDs
The Certificates of Deposits (CDs) are another low-risk way of investing. At the same time, they offer low-profit margins as compared to real estate. In CDs, the higher the interest rate, the bigger the profits. Similarly, they are taxed the same as bonds and offer no deductions.
CDs, however, allow investors to expand their portfolio. The biggest drawback of CDs is that the funds invested can’t be used until they reach maturity – which takes anywhere from 5 to 10 years. In comparison to that, real estate offers much more liquidity and profits.
We can see that real estate is the way to for you as an investor. It offers not only higher potential profits, but is also a more controlled and manageable risk. You can either invest in multifamily, new construction, or a long term investment to gain high value in the future. Similarly, you can also partner up with a credible company to begin your real estate investor journey.
Tallbridge Investments believes selling and investing in real estate should be enjoyable, relationship-based, done with ease and be profitable. They serve others and help them achieve their own real estate goals. Established in 2015, Tallbridge Investment Corp. is a real estate services company headquartered in Vancouver, Canada. They specialize in buying and selling off-market properties in the United States. They offer a broad and diverse portfolio of real estate solutions and off-market investment opportunities.
Visit their website at https://tallbridgeinvestments.com/ to learn more about what they can do for you.