Real estate vs stocks Market in 2024 - Where the rich people invest their money?

[berthayamaguchi]

Great video though I think you were more biased towards Real Estates! Personally, I think stocks are "better". Major con however is that it needs your time, which is easily countered by working with/through an expert. Made my first million earlier this year through one. Have dabbled into Real Estates more than a few times, won't say I've been so lucky.
Another advantage is that you need relatively lesser capital to go into stocks than real estate.
Lastly, can you do the job of a Landlord? Can stocks call you by 12am about a broken pipe?

[KentonKnows]

In my opinion, the big difference which isn't really discussed is that owning real estate CAN give you higher returns, but it takes a lot more work to achieve those returns. Owning a REIT can give you similar exposure and returns minus the cost of your time in finding and managing your own real estate (and it is a considerable amount of time). I agree with several of the other comments, that you should do both. Invest in a broad market index, maybe also a REIT index, buy your own residence and if it interests you maybe get into real estate investing. But realize real estate investing isn't for everyone and it is a lot of work, but in my opinion well worth it! Good luck!

[raphaeldouglas]

Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.

[kashfortheking]

Do both. I wish I had done it, but do stocks definitely.

[NewAgentHQ]

Real estate is a much better investing. Here’s why.

If Done correctly.
1. Rental income ( Aka Passive income)
2. Leveraged returns
3 depreciation of the asset
4. Ability to value add and turn a low rent property into a high rent property.
5.Mortgage paydown. Let your tenants pay the asset off for you.

Real estate is a beautiful thing.

[brennenhrebeniuk]

Stock/mutual fund=
Pros:
1. Very passive
2. Easy to manage
3. Small upfront investment
Cons:
1. Limited returns to 7-11% average
2. Digital by nature
3. Little control over market

Real Estate rental investing
Pros:
1. High ROI at 13%-25% per year on average before tax write-offs
2. Risk is manageable and controllable to a degree
3. Hard physical asset that is unlikely to depreciate when maintained
4. High level of tax write-offs

Cons:
1. Needs more involvement if no manager hired
2. High upfront investment cost
3. Needs planning and saving for future problems
4. More difficult to do if moving a lot but not impossible

[archiemcdougald]

As one with $5000 or a little above it and given the present economy, is it better to invest into Real Estates or into Stocks. Which would yield better output. Considering a young mid income, short term person living in the US with less time on my hands?

[hamzachannar]

Build your wealth from stocks and hold your wealth in real estate is best work to do

[zerotoinfinite]

Let me clarify one thing

It is difficult to manage a huge amount of money so people tend to seek low-risk low return investments to preserve their capital and that's why you see that big investors sometimes invest in places where ROI is as low as 2% or 5% but it preserves their capital.

There are some people in Real estate who do free seminars to tell you how real estate made them rich. Now, if you are rich then why would you come every Sunday outside rather than spending time with your friends and family. They create hype about real estate and the same goes with the stock market.


My personal advice: If you have low capital, then invest in high-risk high return (Yes, that sounds scary but life is all about taking risk, what if you buy a property and next morning earth quake destroys it?)
Once you have a bit more capital then divide your portfolio in 3 part

High Risk High Return - 20% investment
Medium Risk Medium Return - 50% investment
Low Risk Low return - 30%

This investment way won't make you rich but will make sure that you can afford most of the things you want in your life.

From my experience, I have seen that very very rich people do the following:

High-Risk High Return - 10% investment
Medium Risk Medium Return - 40% investment
Low-Risk Low return - 50%

I am ready to have a debate on it.

Real risk in Share Market - Highly volatile (when you need money you might not even get what you invested), Higher return can come next day or after 10 years, if someone else made a mistake in the company then you have to pay the price (price may never come up to your buying price).. ex: Walmart share price - it was a growing business once, generating passive income need constant study and attendance. You can earn 1-2% everyday but for that, you have to risk your capital every day and you need 100% attention and risk appetite. Options and Future can wipe out all your savings in 2-3 days.. you can search online where people lost millions (all their savings) in 2 days when dealing in options, though options are the only thing which can also give you 3000% return in a few hours.

Real risk in Real estate - You have to deal with maintenance (yes, if you become an investor then you don't have to worry about these things but then your profit is limited), just like share market real estate is also depends upon political and environment condition, very low passive income compared to the investment - cash flow can be negative if the property is not in use, in some cases, property value depreciate (Ex: in USA, my friend took a property worth $320, 000 and after 7 years he got $280, 000 after selling - similarly in India, bank charges 8-10% for home loan & 15-30% on commercial property so you have to earn more than 30% return each month to earn something out of the commercial property)

[CB-ugxh]

Real estate makes more sense for long-term and additional income.

[SmartMoneyAnimation]

In my opinion, if you were forced to pick one investment, the stock market is a superior investment choice to real estate. But there's no rule saying that you can't choose both. Build your stock portfolio when you're younger, and then turn to real estate later in life. That will give you the best of both worlds.

[danny]

Best thing is to do both. Start off doing stocks when you are young and start saving for real estate (or wholesale, flipping).

[FairwayStreams]

Do both. Buy rental real-estate and invest monthly in the stock market. In 10 years you will be amazed on what you have accomplished.

[annumungara]

If you're confused just invest in real estate segment of stock market.

[MapAtlass]

The best thing about stocks it that you can buy shares in great companies in the US, even though you don't live there. If your local market is tough, it's really hard to get into real estate that cash flows. Real estate is a great wealth generator but it's not by any means passive and you usually will have to take out a big loan for the purchase.

[alexnguyen]

Dollar cost average SP 500, and you will be fine. Real estate is good as well, just make sure you know what you are doing.

[Moonman]

Real estate investor here. I think everyone ought to invest in stocks. Less competition for me LOL.

[ronaldmcdonald]

Don't forget managing tenants, of which there is liability risk. Getting in and out of real estate is also more complex, takes time, and there is contract risk for commercial real estate, and you need to spend money on lawyers

[rothbardfreedom]

"You won't wake up in the morning and see the value of your property fall to half"
FED: "Hold my beer and turn on the printers"

[animewatch]

Elementary information. Also, anyone can invest easily in rest estate by buying REIT on the stock market.