The Street says that an investment in real estate is better than an investment in the stock market. In another report, scholars of finance may believe otherwise, especially over the long term but considering the the tax breaks, the leverage and the consistency of price gains over time, an investment in property is still a better investment.
Such conclusion was based upon the idea that money invested in property would not see a decline in just a couple of days unlike the money invested in the stock market. Furthermore it was discussed in the same report that even if housing had seen dark days in the past decade, the decline came over a matter of months, not days. As written in The Street, "You never get that the eyes-glued-to-CNBC, I-can't-look-at-my-portfolio, full stomach-gut punch you get from stocks collapsing across the board."
It was also mentioned that the only bright spot in the current market collapse is that the Federal Reserve is not likely to increase interest rates in September. With the volatility in stocks, an interest rate hike could set off the big one and remove all the ground we've gained through monetary policy since the financial crisis according to the source.
Furthermore the source has acknowledged that eventually rates will increase and not including a recession or stock market decline like the one during the financial crisis, a slow series of small increases may not be that detrimental for real estate or housing. There have been some instances where housing may have seen rate increases in some markets but, according to the source, an increase in interest rates could have an even worse effect on stocks.
In conclusion, it was said that speculating on the stock market may be thrilling but there are money-making ways that are easier on the nerves.
