I get this question asked to me a lot. “Why would I invest in Real Estate, why wouldn’t I just leave my money in the Stock Market.”
I see a lot of these financial papers or financial write ups that show financial comparison of a stock performance or of a stock index performance as it relates to Real Estate or Real Estate indexes as well. One of the things they show is just an increase line. So for example a graph, they will show the price of the stock or that index from 20 years ago and then they show increase of that stock and maybe a leveling or an increase or whatever. Then they will show at the end here is where we started, here is where we are now and has risen
Then they will take the same Real Estate analysis and they will show the same thing. Maybe they will show Real Estate didn’t improve at the same rate of appreciation or the same increase as compared to the stock. When they are doing that all they are really showing or comparing si the price of the stock vs the price of the Real Estate or the price of the property. So if you bought the property for $300,000.00 and they are showing over 20 years that property is now worth $600,000.00 compared to the Stock where there’s a bunch of stocks that you bought worth $300.00 and now they are worth $700.00.