The Difference Between Investing in Real Estate Instead of Wall Street

Investing in real estate is a much more secure option than investing in stocks, and today I’ll explain why.
As you’re likely already aware, the economy can change dramatically in just a few years. 

For instance, while the value of the American dollar remained fairly static between 2000 and 2009, money invested into the S&P 500 during that decade would equate to a significantly lower sum, thanks to the high fees and inflation. These factors could easily erode a $100,000 investment into about $70,000 worth of value. 

"It’s clear to see that real estate is the superior option for growing long-term wealth."

Over that same decade, the median home price in Los Angeles County rose from $227,000 in 2000 to $400,000 in 2009. This means that while money invested in the S&P 500 brought a negative return, money invested in real estate saw growth of more than 7.6% each year—or roughly 38% leveraged annual return on your initial 20% down payment. 

Most people probably aren’t aware of the stark comparison between these two investment paths, largely thanks to Wall Street’s advertising engine, but it’s clear to see that real estate is the superior option for growing long-term wealth.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.