American IRAs latest blog talks about real estate investing vs stock market. There is no one asset class that is always better than another.
Charlotte, NC (PRWEB) October 22, 2014
American IRAs latest blog talks about real estate investing vs stock market. There is no one asset class that is always better than another, in every situation. Just think: If there were, no one would ever invest capital in anything else.
That said, anyone considering real estate investing vs stock market should know there are some things an exposure to real estate brings to the table that ordinary stock investing cannot match.
As the blog lays out, one consideration when thinking about real estate vs stock market is that land never goes to zero. Absent some sort of cataclysmic event like a volcanic eruption making the island disappear under the ocean, the value of land – unlike the value of any given stock – isn't going to go to zero. It will always retain some intrinsic value. More leverage is available for real estate. By and large, it is easier to borrow money secured by real estate than for almost anything else under the sun (with the exception of a permanent life insurance policy).
There are all kinds of land investments out there and not all of them necessarily generate much in the way of current income. But if someone wants property to generate a substantial stream of current income it’s usually quite easy to do by selecting rentable properties at reasonable prices.
Real estate is also easy to understand. When it comes to investing, complexity is the enemy. When considering real estate versus stocks...it should be noted that no one could understand Enron’s balance sheets. And few can truly understand what’s going on with the latest technology start-up, pharmaceutical or biotechnology firm. In contrast, though, anyone can understand investment properties, taken one at a time or in small groups: They invest money to buy a property and to maintain it, and people who use the property pay them rent. If their rent payments cover their expenses and mortgage payments, everything else is gravy.
Click here to read the entire blog.
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American IRA was built by investors for investors, and brings their successful investment experience to the table, providing excellent educational material showing the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
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