Investing is like a roller coaster ride, but instead of just screams and thrills, you’re making financial decisions that can impact your future. And when it comes to choosing between the stock market and multifamily real estate, there’s no better investment option than multifamily real estate. In the last five years, it’s been the consistent winner, outpacing the stock market and providing stability and predictability to investors.
So, let’s imagine you’re at the top of a tall hill, getting ready to make a big investment decision. On one side is the stock market, a fast-paced and thrilling ride that promises big returns, but also brings a lot of uncertainty. On the other side is multifamily real estate, a steady and reliable investment option that consistently delivers solid returns. Which ride would you choose?
If you’re like most smart investors, you’ll choose the steady and reliable option: multifamily real estate. In the last five years, multifamily real estate has provided average annual returns of 20%, compared to the stock market’s average annual return of 7%. While the stock market may PROMISE bigger returns, it’s also a more volatile option, with prices that can fluctuate rapidly and unpredictably. Unless you are reading profit and loss statements on a regular basis for the stocks you are buying you are gambling with your money.
Multifamily real estate, on the other hand, is considered to be a more stable investment option. With rising interest rates on home loans, the affordability gap has widened creating more renters. Additionally, the construction of new multifamily buildings has lagged behind the demand, creating a supply and demand imbalance that has further driven up rental prices.
But wait, there’s more! Multifamily real estate is also less susceptible to economic downturns, meaning it’s a more stable investment option during uncertain times. While the stock market may suffer during a recession, people still need a place to live, regardless of the state of the economy, making multifamily real estate a more resilient investment option. If you invest in a proven market there will always be tenants for a well run property.
Finally, multifamily real estate is a more tangible investment option. Unlike stocks, which are simply pieces of paper representing ownership in a company, multifamily real estate is a physical asset that can be seen, touched, and improved upon. This makes it a more attractive investment option for many people, as they can see the tangible benefits of their investment.
So, as you reach the bottom of the hill and make your investment decision, remember that the stock market may be a fast and thrilling ride, but multifamily real estate is the consistent and reliable option that will deliver solid returns and stability for years to come. Multifamily is the way the rich build legacy wealth.
The comparison between multifamily real estate and the stock market over the last five years clearly shows that MF is the wiser investment option. Don’t be swayed by the stock market’s promise of big returns – choose the steady and reliable option of multifamily real estate and enjoy the ride to financial success.