CalculateRealEstateROI

Investing

Is real estate better than stocks?

Different — real estate offers leverage and tax benefits stocks don't; stocks offer liquidity and lower friction.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Different — real estate offers leverage and tax benefits stocks don't; stocks offer liquidity and lower friction.

Expanded explanation

On unlevered basis, S&P 500 (~10%) beats real estate (~9%). Levered, real estate often returns 15–25% IRR thanks to financing and tax shield. Optimal portfolio holds both.

Examples

  • 80% LTV real estate on $100k → $20k invested, ~15% CoC + appreciation.

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