Mika
VIP Contributor
Generally speaking, small investors cannot invest in the real estate market because they need a lot of money. For example, if you are buying $300K home, you might have to pay a 20-40 percent down payment, which is a lot of money. However, when you want to invest in the stock market, you can do with even small funds. But if you can manage a down payment, do you think you will profit more from real estate investment or from the stock market?
The answer depends on your risk tolerance level. When you invest in real estate, you can start collecting rental income, which you can use to pay your mortgage fees. If the market improves, you can even flip your property to make a lot of money. In order to profit from the stock market, you need to invest for the long term. However, you can benefit from real estate even for a short duration because you can start earning rental income right away.
The answer depends on your risk tolerance level. When you invest in real estate, you can start collecting rental income, which you can use to pay your mortgage fees. If the market improves, you can even flip your property to make a lot of money. In order to profit from the stock market, you need to invest for the long term. However, you can benefit from real estate even for a short duration because you can start earning rental income right away.