Uncategorized November 15, 2012

Investing-Real estate vs Stocks

Have you been watching the stock market lately? Yikes! How much has it gone down since the election?  Wondering where to invest your money?

Financial Return When measuring financial return alone, real estate has fared far better than the stock market in recent years. Between 2000 and 2011, real estate provided an average Return On Investment (ROI) of 43 percent, while the Standard & Poor index lost 12 percent. Between 1999 and 2004, real estate increased 56 percent, while the S&P lost 6 percent.

Financial Risk Historically, real estate has been a far less risky investment than stocks. The largest annual decrease in real estate prices might be on the order of five percent. For stocks, the price declines can be 20 percent or more.

Tax Benefits As a homeowner, you're entitled to a bevy of tax benefits you don't get as a stock investor. You can usually deduct your home loan "points," mortgage interest, property taxes, home-office expenses, capital gains, and even moving expenses.

Something to think about.