Stocks Vs. Real Estate: What Is The Better Investment?

Have you ever wondered if it’s better to invest in stocks vs. real estate?

We already covered the topic of investing in 401(k) vs. real estate. But 401(k) has an unfair tax advantage, and often you still have this question after maximizing your retirement accounts. Let us figure out today; if real estate or stocks will make you richer?

Pros Of Investing In Stocks Low Investment Costs Compared to commercial real estate investing, anyone can buy shares in mutual funds or Exchange Traded Funds (ETFs) for a relatively low amount. Fee-free platforms like M1Finance make it easy to start investing in stocks and ETFs for just $10/week.

Diversification is a good investment strategy for any portfolio. Diversification means investing in a variety of assets to reduce risk and increase profit.

Easier To Diversify

Dollar-Cost Averaging

One of the most effective investment strategies is dollar-cost averaging (DCA). DCA means that you purchase an asset or investment with a fixed dollar amount on a regular schedule over time regardless of what the market is doing.


Stocks are highly liquid. It means that stock investors can sell their stocks quickly, whenever they want. Your investment can be locked up for years in commercial real estate. Unlike investment real estate, it’s also easier to know the value of your stock’s net worth at any given time.

Dividends Some stocks pay dividends. These are extra returns produced by the company in addition to the average appreciation of your stock price. Dividends permit stock investors to have a nice passive income stream.

No Transaction Fees Due to the competition and the addition of new players in the stock investment market, stock transaction fees have dropped to almost zero.

Cons Of Investing In Stocks Less Control Over Your Investments The first significant risk is that you do not have complete control over where you are putting your money. With commercial real estate investing, investors know what they are investing in and where their money is going. However, with the stock market, the investor does not know what companies they are potentially handing their money over to or what those companies plan for that money.

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