16 Must-Read Pros and Cons of Real Estate Investing
Table of Contents
- Why Should I Compare the Pros and Cons of Real Estate Investing?
- What Investment Should I Compare to Real Estate?
- Compare the 16 Pros and Cons of these Factors
- Will I have an Advantage with Real Estate over Stocks?
- Blog Posts and Calculators to Compare Real Estate vs Stocks
Why Should I Compare the Pros and Cons of Real Estate Investing?
Comparing the advantages and disadvantages of real estate before diving in, will save you from future surprises in the search, purchase, and then general operating phase. One goal of any investment, is to minimize surprises. You want to be prepared so you can mitigate unplanned expenses, poor budgeting, and even bad tenants.
What Investment Should I Compare to Real Estate?
Real Estate requires more effort than other investments that happen from the comfort of your home, behind a computer. For that reason, we are comparing Real Estate to a stock investment in a S&P 500 Exchange Traded Fund (ETF). Which simply means, buying a single fund, that holds 500 of the leading public traded companies in the US, and holding it indefinitely.
Picking individual stocks and hoping for the best is not a good idea, however buying and holding large indexes is generally recommended strategy. For that reason, the pros and cons are built around holding a S&P 500 ETF.
Compare the 16 Pros and Cons of these Factors
In this list of 16 exhaustive factors, either the advantage (or pro) or disadvantage (con) will apply to buying an income property, or holding the S&P 500 Stock ETF. Carefully consider all these factors before deciding if the extra effort, is worth the reward.
Will I have an Advantage with Real Estate over Stocks?
This is a great question needs to take into account all the factors listed above. However the difficulty in forecasting your investment returns depends global and local trends, and heavily on the city you are considering purchasing the income property. Theory is good, but numbers matter then trying to estimate this major financial decision.
To help with the process, the business case guy blog posts and tools can help you estate a 10-year forecast, which you can review with your financial advisor, accountant, or real estate agent.
Blog Posts and Calculators to Compare Real Estate vs Stocks
Blog Posts and Tools
Disclaimer
This guide is for informational purposes only. It is not meant to decide for you. All figures are inputted based on your best estimate and can fluctuate based on the variety of risks outlined. Business Case Guy is not responsible for the outcomes, good or bad, of any decisions made using this guide. Please review all financial choices in detail with your financial advisor, real estate agent, accountant, or any related, qualified professional.
