Buying Real Estate vs. Buying Stocks: Here’s Why a Home Should Be Your Priority

Once you are done with debt and you have started to save, it is commonly the case that you will start hearing about the risks and rewards of investing in stocks or real estate. Unfortunately, it can be difficult for many people to know what type of investment is going to work better for them down the road. If you are currently considering what you should put your money into, here are some reasons you may want to turn to real estate.

Buying Real Estate vs Buying Stocks

It’s Something You Can See

While investing in the stock market will give you the ability to invest as little or as much as you want, a home will take a monthly payment and a down payment in order to make the deal. Fortunately, this means that you’ll be investing money every month into something that belongs to you and that you can see. A home is not only something you can invest in all the time, it will enable you to avoid putting money into rent that you’ll never get back.

Saving Money On Tax Breaks

There may be a certain amount of volatility with any market investment, but when it comes to buying a home you also have the benefit of tax breaks that are designed specifically for homeowners. In addition to the ability to deduct interest on your main residence if you’ve lived in your property for a minimum of two of the last five years, you’ll also be able to sell it tax-free. Investing in a home certainly takes savings, but there are many available tax benefits that can save money.

A Sense Of Security (Buying Real Estate vs Buying Stocks)

Many people want to invest in a home because it offers up a piece of something that they can really own. However, another appealing aspect of having a home is that you’ll be removed from the day-to-day rumblings of the stock market. Investing can make people more than a little weary, even if they’re knowledgeable about the markets, and this can cause people to sell off and lose money when the going gets tough.

What Makes More Millionaires: Stocks or Real Estate?

90% of all millionaires become so through owning real estate. One of the main reason for this is due to the many tax benefits to owning property. Many people aren’t aware of them, but they’re one of the best benefits to owning real estate. There are many benefits that help people substantially lower their taxes, including depreciation, mortgage and property tax deductions, no self-employment tax on rental income and much more. Because of these benefits real estate investors end up paying less taxes overall even as they are accumulate more income. This is why many millionaires invest in real estate. Not only does it make you money but it allows you to keep a lot more of the money you make.

Bottom Line (Buying Real Estate vs. Buying Stocks: Here’s Why a Home Should Be Your Priority)

Investing in real estate and the stock market both involve some degree of financial risk, but you might not be aware that there are several added benefits of buying a home. Buying a home can offer various benefits, such as building equity over time, potential appreciation in value, stability and security, the ability to personalize and make improvements to your living space, and the freedom to make your own decisions about your property. Buying a home also provides tax break incentives and a great sense of security. This often makes real estate investing the better financial route to take.

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