Real Estate Vs. Stock Investments – What’s Better?

From Due.:

In the past 50 years, stocks have generally outperformed real estate, with an average annual return of 10.59% compared to real estate’s 5.24% growth. However, leveraging with real estate can potentially lead to higher returns, but it also comes with higher risks and debt burden. Real estate also carries additional costs, with nearly 20% of rental income going to property management and other expenses. Furthermore, the tax treatment of income from real estate is less favorable than that of stocks. Ultimately, a well-balanced and diversified portfolio of both real estate and stocks may provide the most robust foundation for building long-term wealth.



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