Weighing the rent-verses-buy decision when considering a home comes with upsides for both options. Ultimately, the correct answer depends on multiple

What is the most secure and profitable investment in the world?

It’s safe to say that real estate is one of the most profitable and secure ways to invest money! Many investors would choose to buy a real estate investment property over other investment like stocks and shares, and here are the top reasons why:

1. Real Estate Is Tangible

They’re called real for a reason. Investment properties are tangible assets, meaning they’re illiquid. Many take this feature as a disadvantage to real estate investing, but actually, it’s the opposite. Why? Because tangible assets will always have value, unlike intangible ones such as stocks, which can dip down to zero and lose all their value! This makes real estate the most secure investment because property investors can check the rental property before buying it.

Moreover, the moment a real estate investor buys an investment property, he/she will have full control over the property. He/she’ll decide how to finance it, how much to charge tenants for rent, how much to spend on maintaining it, and for how long he/she’ll hold it until selling it.

Related: Selling an Investment Property: When Is the Right Time?

When you’re investing your money in intangible assets, on the other hand, you don’t get this much control over your investment. For example, the only choice stock investors can make is which company they want to invest their money in. After that, they have no power over their investment or what the company might do with their money.

2. Many Ways to Make Money

The second and probably the most common reason why so many choose real estate investing as the most profitable way to invest money is the immensity of the housing market. The world of real estate investing is vast; property investors have the opportunity to make money in so many different ways.

A real estate investor could invest in a rental property for the long term or for the short term. Property investors also have the ability to decide if they want to invest in commercial real estate or residential real estate. When investing in the latter, there are many different types of residential investment properties to invest in such as single-family homes, multi-family homes, condos, townhomes, etc. Another choice is to invest in traditional real estate or Airbnb investment properties.

Another proof that real estate is the most profitable investment is that real estate investors also have the ability to make money without even buying a rental property! This is possible if the real estate investor decides to become a wholesaler or invest in real estate investment trusts (REITs). Property investors can even diversify and grow their investment portfolio by investing in different types of investment properties and following different investment strategies!

Make sure to check out Mashvisor’s investment property calculator to help you determine which investment property type and investment strategy are the best for you!

3. Real Estate Provides Better Returns

For any investor, the most profitable investment is the one which provides you with attractive returns which you can either save or reinvest. In general, real estate is the most profitable investment because it provides property investors with a steady source of cash flow (monthly rental income). Not only that, but a real estate investor can find ways to increase his/her rental cash flow and generate a higher return on investment.

The steady cash flow from investment properties makes it easier for property investors to manage their finances and plan ahead of time. This is not something you can do with other types of investments. For example, stocks do make good returns; however, stock investors only see their money when they sell their shares.

4. Real Estate Is Safe

There’s no doubt that the best investment has to be safe. In general, real estate investing is very safe and secure because investment properties are tangible, physical assets – meaning it’s technically impossible for property investors to lose everything with real estate investing as long as they’re smart!

If the housing market is facing a crisis, just hold onto your rental property until the situation improves, and, as a result, you’ll build equity. In case of natural disasters, a fire, or destructive tenants, then don’t worry as your rental property is insured.

There’s a way to reduce and overcome almost every risk of real estate investing! In addition, the longer you hold onto a rental property and the more investment properties you own, the fewer risks you’ll face. Thus, if you’re looking for the most secure investment, real estate investing is as safe as it gets.

Related: 10 Major Risks of Real Estate Investing and How to Reduce Them

5. Real Estate Offers Tax Benefits

The final proof that real estate is the most profitable investment is the many tax benefits and advantages that come with buying an investment property. For example, your cash flow is tax-free. Moreover, property investors can deduct mortgage interest, property taxes, operation expenses, insurance, and depreciation from their taxes.

In addition, when a real estate investor sells an investment property and decides to reinvest the proceeds in another rental property, then he/she will not have to pay the capital gains tax. This is another proof as to why real estate is the most profitable investment.

As you can see, real estate is the most profitable and secure investment comparing to other investments. Head over to Mashvisor to learn more about real estate and start searching for your fist investment property in any state, city, and neighborhood in the U.S!