Real estate investing can be as hands-on or as hands-off as you make it. You may generate more monthly cash flow by managing your properties and doing repairs independently.
While you may be able to outsource the management of your real estate property, you’ll still spend some time and energy purchasing the property, fixing any needed maintenance issues, and setting up the workflow.
Historically, stocks have increased in value over time. The S&P 500 averages 9% to 10% ROI annually. While this isn’t true every year, stocks should increase in value over the long haul.
When you own stocks, you essentially own a portion of a company but don’t have to do any work for them to turn a profit. You simply allow them the use of your invested money and realize a return on that money if the company does well.
While stocks generally increase in value over the long term, there may be periods of an economic downturn in which your stocks lose a huge amount of value within a couple of hours.
Unlike real estate, stock values change by the minute. While you may be able to get ahead of a slowly falling real estate market, stocks can be a bit more tricky.