27 Feb Real estate is better than the stock market for this one reason…
Way more people have been burned buying stocks than by buying real estate.
When it comes to stocks, you can project and analyze the price to earnings, price to book, and price to sales but that isn’t going to help you when people stop buying that company’s products for whatever reason.
In the multi family real estate space people always need a place to live. Rents might fluctuate a little and when they do it’s usually up.
In real estate you’ll never have a 25% overnight gap down because a company missed they’re numbers.
The one reason real estate is better – it’s easier to spot a bad deal in real estate. With stocks, a company can look great and then completely fall apart. In real estate, if the numbers pencil out before you buy, you have a much higher chance that the property will keep performing well and you have much more control over that happening.