Should I Invest in Real Estate or the Stock Market?

Investing offers diverse opportunities, from real estate to the stock market. Each option presents unique benefits and potential returns, and you may wonder which option is right for you. According to Mathew Laborde, President & CEO at ELIFIN®, the answer depends on your personal situation, goals, and interests.

Real Estate vs. Stocks: A Comparison

Laborde says, “Real estate, depending on how and what you invest in, has many aspects that investing in stocks doesn’t.” For example, real estate is a physical investment that can affect your living environment and community, which might matter to you based on your goals and values. Real estate also offers benefits like tax advantages and the satisfaction of owning something tangible. “Stocks, on the other hand, have the advantage of requiring less ongoing maintenance,” says Laborde. This means less hands-on management and fewer responsibilities compared to real estate.

But, Laborde notes, there are ways to invest in real estate without the hassle of maintenance. To find clarity, think about what you want to achieve, your strengths and weaknesses, your resources, and how much you have to invest. “Often, there’s no one-size-fits-all answer. It’s not about choosing real estate over stocks or vice versa,” he explains. It’s about what makes the most sense for you.

How to Start Evaluating Your Investment Options

So how do you figure out what’s right for you?  Laborde advises that “talking to professionals in both arenas is a great place to start.” If you have wealth, professionals in commercial real estate and financial advisory are valuable resources. They are experts in their fields and can provide insightful opinions and guidance. Laborde recommends hearing different perspectives and combining it with your own opinions and preferences. “Taking that information to make the best decision for myself is probably the way to go,” he adds.

How to Know Who to Trust

Trust is a crucial factor when seeking investment advice. “How do you know who to trust? That’s a good question,” Laborde acknowledges. In both real estate and stock brokerage, it can sometimes be challenging. Laborde advises that you should have a certain feeling for people. “Look at their track record – what they’ve actually done, not just what it looks like they’ve done,” he suggests.

Consider how they communicate, how they treat you, and how your interactions with them go. Compare their advice with other advice you’ve received and what you know to be true in your life. “If everything aligns, that’s a good sign. If it doesn’t, don’t make the mistake of thinking that just because they are the expert, you should disregard your doubts,” Laborde cautions.

Often, your doubts and second-guessing are crucial to listen to. “Many times, when things don’t make sense, it’s not because you’re new to it, but because they simply don’t make sense,” Laborde advises. Trust your intuition and gut feeling. Seek different opinions until you feel satisfied. You might speak with someone, shop around, and return to the original advisor and realize they were the best option, but don’t disregard your internal feelings. “Pay attention to them and talk to as many people as needed until you feel confident,” Laborde concludes.

Making the Right Choice

Investing in real estate or the stock market is a significant decision that should be made carefully. By evaluating your personal situation, consulting with professionals, and trusting your instincts, you can make an informed choice that aligns with your goals and resources. Whether you choose real estate for its tangible benefits and community impact, or stocks for their lower maintenance, the most important thing is to make a decision that best suits your unique circumstances.

Elifin Realty
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