5 Reasons Real Estate is Better than Stocks in Volatile Markets
When it comes to the stock market, there’s no doubt it can be volatile. We’ve seen it firsthand over the past few years with all of the ups and downs, which is leaving many investors questioning if investing in the stock market is the right decision for their portfolio.
If you’re looking for an alternative investment—something that is less volatile and more stable—real estate is a great option to consider. Here are five reasons why real estate is a better investment than stocks during times of market volatility.
1. It’s a Physical Asset
One of the main advantages of investing in real estate is the fact that it’s a physical asset—something that you can see and touch. So, while the stock market may fluctuate, a real estate investment will typically remain stable.
2. Not as Volatile
Another reason to choose real estate over stocks is that it’s not as volatile. The stock market can fluctuate quickly due to market forces such as supply and demand, world events, government policies, and speculation vs. expectation. While real estate can fluctuate, it typically doesn’t do so at the same rate.
3. Generates Incomes
Unlike stocks, which simply provide capital gains, real estate can provide you with a steady income stream. Whether you’re renting out a property or leasing land, you have the potential to earn money from your investment.
4. Hedge Against Inflation
Real estate is a great hedge against inflation. As we’ve seen over the years, the cost of living keeps rising. And, as your property appreciates in value, you’ll be able to keep up with the rising costs by increasing rent or selling the property for a higher market price.
It’s a Long-Term Investment
If you’re looking to invest for the long haul, real estate is a better option than stocks. With real estate, you can purchase a property and hold onto it for years, or even decades. And, as we all know, the longer you hold an investment, the more time it has to grow.
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MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.