Why Multifamily Housing Is a Better Investment Than the Stock Market
If you’re looking toward the future and you want to grow your wealth now and build your retirement fund at the same time, you may be taking a long, hard look at the stock market and other investments. As far as labor and time go, stocks are easy, and when they are successful they bring in completely passive income. However, the stock market is volatile, and investing your entire investment portfolio in stocks is never a good idea. That’s why so many investors have historically diversified and stabilized their portfolios with real estate investments.
Today, though, it looks as if investing in real estate and owning income property in Dallas may be attractive for more than just its stabilizing nature. Right now is the best time to look for apartments for sale in Dallas, TX for a number of reasons.
Higher Returns Than Stocks
Right now, thanks to the increase in demand for rental housing in Dallas, multifamily investment properties are performing better than stocks for investors. That’s right – those who have invested in REITs (real estate investment trusts), crowdfunded real estate, and other means to purchase equity in apartments for sale in Dallas, TX have been seeing higher returns than those investing in the stock market.
Lower Risk
Not only are we seeing better returns for income property in Dallas than stock investments, but these real estate investments are actually much lower risk than stock market investments, as well. When you consider which investments are good deals, you should always look at the risk versus the reward. Lower risk investments generally come with lower rewards, so when a low-risk investment also comes with a higher potential reward, it’s obviously a much better investment opportunity.
Capital Gains Deferral
If you take ownership of an income property in Dallas, and you later sell it to purchase another income property, you can use a 1031 exchange to defer paying capital gains tax on the profits. That’s not the case with stock market investments. When you make a large profit on stocks, you will be responsible for paying your capital gains tax, and you will not have the opportunity to defer that tax as you do with real estate investments.
One word of warning here, though – if you choose to purchase shares in an REIT, you will not be eligible for a 1031 exchange. With this type of investment, you’ll be investing in the trust, which in turn invests in the property. There are numerous advantages to investing in REITs, but the 1031 exchange is unfortunately not one of them. That said, these investments are still outperforming stock market investments right now.
With this evidence, you can see why it’s a smart move to invest in apartments for sale in Dallas, TX today.
Today, though, it looks as if investing in real estate and owning income property in Dallas may be attractive for more than just its stabilizing nature. Right now is the best time to look for apartments for sale in Dallas, TX for a number of reasons.
Higher Returns Than Stocks
Right now, thanks to the increase in demand for rental housing in Dallas, multifamily investment properties are performing better than stocks for investors. That’s right – those who have invested in REITs (real estate investment trusts), crowdfunded real estate, and other means to purchase equity in apartments for sale in Dallas, TX have been seeing higher returns than those investing in the stock market.
Lower Risk
Not only are we seeing better returns for income property in Dallas than stock investments, but these real estate investments are actually much lower risk than stock market investments, as well. When you consider which investments are good deals, you should always look at the risk versus the reward. Lower risk investments generally come with lower rewards, so when a low-risk investment also comes with a higher potential reward, it’s obviously a much better investment opportunity.
Capital Gains Deferral
If you take ownership of an income property in Dallas, and you later sell it to purchase another income property, you can use a 1031 exchange to defer paying capital gains tax on the profits. That’s not the case with stock market investments. When you make a large profit on stocks, you will be responsible for paying your capital gains tax, and you will not have the opportunity to defer that tax as you do with real estate investments.
One word of warning here, though – if you choose to purchase shares in an REIT, you will not be eligible for a 1031 exchange. With this type of investment, you’ll be investing in the trust, which in turn invests in the property. There are numerous advantages to investing in REITs, but the 1031 exchange is unfortunately not one of them. That said, these investments are still outperforming stock market investments right now.
With this evidence, you can see why it’s a smart move to invest in apartments for sale in Dallas, TX today.
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