To say that the stock market in 2016 has been brutal and volatile would be an understatement. China’s lagging economy and low oil prices has infused uncertainty into the markets. Wall Street strategists initially forecasted that stock market returns would be modest. However, as of the writing of this article, the Dow is down almost 1,000 points while the S&P 500 has declined almost 5%. It’s no surprise that some stock market investors have lowered expectations for 2016.

The real estate market, however, is hot because investors are enjoying solid gains in appreciation and rents. Prices have been moving steadily higher since the housing bubble exploded in 2012. The historically low number of houses for sale makes it a seller’s market. Competition is stiff, and overzealous investors risk overpaying in a seller’s market. Investing in real estate will not produce get-rich-quick results, but it’s one of the best types of investments to make. For investors who are willing to be patient, complete their due diligence, buy right, and properly manage their properties, the rewards will be astronomic.

There is a huge difference between investing in the stock market and in real estate. Both have their own benefits.

The Stock Market

The biggest benefit of investing in the stock market is that you can quickly see results. You can therefore quickly invest in it and reap major rewards. When investing in the stock market, you do not have to worry about waiting to receive money because you will make it right away. On the downside, though, the stock market is highly unpredictable and volatile. Therefore, you can easily lose money.

The stock market allows you to diversify your portfolio and compound interest. It offers expediency, value, diversification, and a good measure of tax deferral.

Real Estate

The major benefit of investing in real estate is that it guarantees slow results, but offers a far smaller chance of losing money. You can therefore invest in it and achieve high results. Real estate will allow you to divulge in something that is far more meaningful and will allow you to get extra cash whenever you want.

Guaranteed Cash Flow

Most people invest in rental properties because they guarantee a smooth cash flow. The extra money remains after all bills have been fully paid. The cash flow can provide long-lasting and ongoing income that is mostly passive. This money can then be spent on reinvesting, traveling, and business.

There are tax benefits to investing in real estate as well. For instance, it allows the business owner to earn more by investing less. The government fully rewards the rental property owners and allows them to get the tax benefits.


The stock market and real estate are completely different investment opportunities. The stock market guarantees quicker results and versatility while allowing an individual to diversify his or her portfolio. Meanwhile, real estate is far more predictable and therefore an easier investment in the long term.

Author: Sandra Nesbitt

2 Responses to Investing in the Stock Market vs. Investing in Real Estate

  1. Jacquelyn says:

    Thanks for the outstanding information, it actually is useful.

  2. Genie says:

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