Should I invest in Rental Properties or the Stock Market?

Economic recessions have taught almost every working person to have multiple revenue streams and not depend only on their current source of income. After the most recent episode of Covid-19, almost everyone is looking to invest their cash in profitable avenues and not just keep it in a savings account. 

Based on the most popular opinions collected from various sources, the two most preferred areas are:

Let’s evaluate both and weigh the pros and cons of each investment channel: 

 Stock Market

Investing in stocks looks very simple and easy, especially since the initial entry in this area seems more financially practical as you can start with little money. The fact, however, is that to earn a sizeable income, you need to invest big eventually. 

Practically speaking, handling stocks is not as rosy as it looks externally. It requires in-depth market research, daily monitoring of local, national, and international stock exchanges, and any related news. In addition, you must deal with emotional ups and downs more often than not.

This potential of being manipulated or influenced by the news and media makes this area very volatile and unpredictable. You can lose money fast, and sometimes, if you are unlucky or get the ‘wrong tip’, you may lose all of it!

Rental Properties

Real estate investments as a whole and rental properties specifically are deemed as the most stable investments. However challenging the situation gets, even in the worst case of no tenant, you still have a valuable establishment in your name. Even in case of a natural disaster, it is insured! 

One of the main benefits of owning rental properties is the monthly passive income. If you analyze the property correctly before you buy, your property will be cash flowing positively every month. To get market rents, you’ll need to provide a clean and well-kept property to a tenant. In addition, the monthly rent needs to be higher than your monthly costs to get positive cash flow.

It is not as easy to start investing in rental properties as it is in the stock market. It requires careful deliberations with experienced professionals, but this revenue stream has the most potential to make you big bucks without risking it all. 

Features like Tax benefits, inflation adjustment, and a stable passive income make this area of investment very lucrative as compared to investing in stocks.

So, if you’re at the point where you’re looking to buy a rental property, but you’re not sure where to start… then I invite you to click the picture below to learn more about my signature course, Step by Step Guide on How to Buy Pre-Foreclosures at Auction now!