Index Funds Vs. Real Estate Investing
And Why I’m Converting Fully into Index Funds As A Former Real Estate Investor
In the world of absolutes, you almost always need to have a definitive answer for why you’re committing to one side or the other.
The conversation for Stocks Vs. Real Estate is not new by any means. It is one of the oldest debates in the investing world.
I’ve been investing in Real Estate ever Since I graduated college and here's exactly why I would prefer index funds over real estate as an investment.
More Predictable Returns
Index funds offer returns that mirror the performance of their underlying index, making their returns more predictable over the long term compared to real estate, where market fluctuations can significantly impact property values and rental income.
The index fund historically has provided an 8% annualized return year over year since their creation over 20 years ago.
Whereas with real estate you might find a home run where there's never any major problems and you always have good tenants, but mix that in with the bad properties where you have a handful of vacancies and plenty of expensive repairs, the gains you might see are almost always washed with the losses.
