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TL;DR:
- Investing in real estate and the stock market are both passive income sources
- Investing in the stock market can potentially yield better returns over time
- Both come with its own set of risks that all investors should consider
Unpopular opinion: Investing in the stock market is better than investing in real estate over the long term. Put simply, an investment in real estate earns just three to four percent per year historically; on the contrary, investments in the stock market post about 10 percent annual returns. That can amount to an impressive return on investment (ROI).
And, when you invest with Q.ai’s artificial intelligence-powered technology, you’re well-poised to maximize your returns and minimize your risks.
So, would you invest in a house or a stock? Why? Let’s unpack the answers to some of the most frequently asked questions about buying a house vs. investing in the stock market.
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What are the best ways to earn passive income?
There are a wealth of ways to earn a passive income, including both investing in real estate property and investing in the stock market, whether you choose to put your money in stocks, exchange-traded funds (ETFs), bonds, or other assets.
Investing in both real estate and the stock market can help your money make more money over time. If you’re asking yourself questions like, “is it better to invest in real estate or an index fund,” or “is it better to invest in rental properties or dividend stocks,” the answer is a nuanced one.
First, you should seek to identify what is the best way to make a passive income in real estate. One of the most lucrative ways to make money in real estate is by buying up rental properties and, well, renting them out to others who foot the bills for you. When you rent them, the tenants essentially help to pay off your mortgage and, ideally, you can earn a passive income on top of that.
For example, if your mortgage is $1,000 per month, you might charge $1,500 for rent per month. This means that you can pay off your monthly mortgage bill and pocket the extra $500. While much of that money may go to covering utilities (if you don’t charge extra for those) and handling any repairs, the goal is to …….
Source: https://www.forbes.com/sites/qai/2022/03/02/buying-a-house-vs-investing-in-the-stock-market/