Real estate vs. stocks isn’t that simple. Leverage, taxes, and inflation flip the math fast. REITs look clean on paper—until yields compress and taxes bite. Real estate looks messy—until inflation pays down your fixed debt. Neither wins automatically. The investor who knows which risk they’re actually holding does.
Fair point. Risk control is everything. But an investor doesn’t have to use leverage, that’s a choice. Taxes won’t also bite if held in a tax-advantaged account. And lastly, buying at the right price is key. So if yields compress and prices go down, so what. High quality REITs will go up and continue to pay dividends along the way.
True — but most investors do use leverage, even indirectly. Inflation helps if you’re locked in low, but 6–7% mortgage debt flips that benefit fast. REITs and rentals both work when the entry multiple’s right. The danger’s assuming either is risk-free income — that’s where most portfolios quietly bleed.
Real estate vs. stocks isn’t that simple. Leverage, taxes, and inflation flip the math fast. REITs look clean on paper—until yields compress and taxes bite. Real estate looks messy—until inflation pays down your fixed debt. Neither wins automatically. The investor who knows which risk they’re actually holding does.
Fair point. Risk control is everything. But an investor doesn’t have to use leverage, that’s a choice. Taxes won’t also bite if held in a tax-advantaged account. And lastly, buying at the right price is key. So if yields compress and prices go down, so what. High quality REITs will go up and continue to pay dividends along the way.
True — but most investors do use leverage, even indirectly. Inflation helps if you’re locked in low, but 6–7% mortgage debt flips that benefit fast. REITs and rentals both work when the entry multiple’s right. The danger’s assuming either is risk-free income — that’s where most portfolios quietly bleed.
Very true. No investor should assume investing is risk-free. Thanks for sharing. Very thoughtful replies!