So I have a college assignment given personally by a professor. His question is simple:
If you have a million dollars and 10 years to invest. Why should you go for real estate rather than going for mutual funds? If mutual funds give you an average of 12% interest YOY and that comes down to 3,105,848 after 10 years which is definitely higher that what an average real estate market gives you.
WHY WOULD YOU WANNA INVEST IN REAL ESTATE?
So far my answer has consisted of the following points
-tangible investment -tax benefits -Higher cash flow(loans and stuff) -Stable market -Diversification of portfolio -protection against recessions -Inflation benefits -Rental income aside from the appreciation on the asset
I’ve explained all of these points in a bit more detail but he’s still not convinced. He needs more concrete reasons as to why it’s a better investment. His remarks are: these are great points for a beginner. HE NEEDS MORE IN-DEPTH answer and he says the answer is more logical and practical rather than technical. Real estate is a passion of mine and it is definitely a field that I wanna get into so this one is really important. Detailed answers and complex terminology is not a problem. I just need an Answer
Help me please.
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source https://www.reddit.com/r/RealEstate/comments/14hntrk/real_estate_vs_mutual_funds/
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