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Weigh Your Investment Options for 2020: Real Estate vs. Stocks

Weigh Your Investment Options for 2020

The majority of Americans tend to hear about the Stock Market everyday. To the average citizen, it’s just a bunch of graphs with share prices. But for those who are willingly to be more hands on than the average American is it worth it? Well that’s all relative to the individual person. Someone who lives in one of the major cities such as Chicago, New York or Los Angeles, or any other city with an extreme cost of living investing in stocks might be more advantageous due to a lower start up fee.

However, to someone looking to invest excess cash who lives in smaller cities with a lower cost of living it could make more sense to invest in Real Estate. For example more people are looking to purchase homes in smaller cities because they can actually afford them rather than forcing themselves to rent in the previously mentioned cities. That’s why it might be beneficial to invest in commercial property for sale in St. Louis, as an example.

Hands on Ability

When you purchase a stock you have no control over what the market does unless you physically deal with the company in some way. More so than not, the average person does not have that type of influence or connection. For someone in a smaller town and has just invested in commercial real estate in Missouri, that person can physically go and inspect their investment. They can make improvements to secure a greater return and generally some people are mentally and emotionally happier if they have something that physically manifests itself rather than a number on the NASDAQ.


One of the benefits of investing in the Stock Market rather than Real Estate is the lower cost needed to start making returns in your investment. While we mentioned that the physicality of something like a commercial space for rent in St. Louis, provides emotional satisfaction, the operating expenses including taxes and upkeep for outweigh that of your investment in the stock market. Also more time may be required when visiting onsite. It’s up to each individual investor to understand their needs. It should be noted that in some cases some repairs can be written off in Tax Refunds, however all income earned through the stock market cannot be after $3,000 of losses have been claimed. When considering longevity the stock market eventually goes up whereas commercial real estate in St. Louis that experiences years of damaging weather patterns and age will eventually depreciate if not upkept.


Measuring your returns in the stock market is practically impossible. Whereas a stock could be $50 dollars one day it could easily be $30 the next or $500 the following month. It’s unprecedented compared to real estate with its uncontrollable decisions which requires a lot more risk on the investors part. In Real Estate you will not experience volatility of returns, but what the investor is believing is a steady increase rather than a drastic uncontrollable depreciation. It’s best to get emotionally involved in your physical commercial real estate rather than getting emotionally attached to uncontrollable figures.

Both Stocks and Real Estate offer pros and cons to each particular investor. It mostly dwindles down to how hands on you would like to be and which option provides a lesser emotional toll while still being able to make a substantial return on your investment. Both options should provide some sort of return, now it comes down to picking what’s right for you.

If you’re considering an investment in real estate, it is important to consult with a professional that has the best understanding of the local area. Get in touch with Cardinal Realty Group, an established industry leader with more than 35 years of commercial real estate experience. Call 636.225.0385 or send an email at Hal(at)CardinalRealtyGroup(dotted)com.