Name: 不動産対株式市場 - どこに金持ちが自分のお金を投資する？ (Real estate vs stocks Market - Where the rich people invest their money?)
Uploaded: 2021-01-14T11:20:22.000Z
Duration: 11 min 43 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

Throughout history, gold and real estate have been two most reliable investments.

Landlords were always the elites of the society and owning a piece of real estate was like

程度の副詞

a dream for most people, even today, prices have risen so much that owning a home seems

However, in the last few centuries, the financial system has developed so much that it presents

Warren Buffett is a living proof that with smart long term investments in the stock market,

Here in this video, we will explore which one is a better investment?

Is real estate is still a great investment as it was in the past?

Or the stock market is a better alternative in the 21st century?

Real estate investors claim that real estate is the best investment ever, but stock market

Both of them are right to a certain degree, the truth is somewhere in the middle.

But to find out where exactly, we have to take an in-depth look into each of them.

Let's start with the fact that real estate is expensive, no matter where you are.

People often work an entire life just to own one property, that was the case with your

To make a single real estate investment, you need a lot of savings.

On the other hand, you can start investing in the stock market with as little as 5 dollars.

Of course, it depends on the stock, but most companies, even great companies such as apple,

are traded at around 300 bucks per share, you can become an investor in one of the largest

companies in the world with just a few hundred dollars.

But the cost doesn't stop there, it's no longer like the old days where you have to pay a

broker, with apps like Robinhood, you can purchase stocks for absolutely free.

But when it comes to real estate, the transaction fee is quite expensive.

That doesn't necessarily mean the stock market is better.

Risks that come with the stock market are much higher.

It's difficult to analyze the market and individual stocks in particular.

We might be at the peak of expansion period where the entire market is overvalued, and

your investment will probably fall by 20, 30, or 40 percent if you don't cash out right

If anything history taught us that, nothing is too big to fail.

For instance, Apple is a huge company, so was Nokia once upon a time.

In fact, Apple was already once on the brink of bankruptcy.

Stock prices change every day for different reasons.

That can trigger an emotional response and push you to exist the market at a loss, which

is what happens quite often, even with professional investors.

But with real estate, it isn't like that.

As long as it's in the city, the land beneath it will always be valuable.

And even during crises, they often restore their value pretty quickly, since everyone

Real estate covers one of our most important needs.

When you buy a property, you can sleep well and be confident that you are not going to

wake up the next morning with the news that your property lost half of its value.

What also makes real estate attractive is that it provides passive income.

With rent prices going up, you don't even need to work, its one of the few investments

that can provide you with a strong, stable income that has a dividend yield of 7, 8 or

Whereas, it's extremely rare for any company to pay a dividend yield of 5 percent or more.

Some companies pay, of course, but they are risky stocks where you might lose much more

by the drop of the price than you can possibly make out of dividends.

Real estate doesn't appreciate as much as the stock market.

In 2019, on average, home prices appreciated by 3.8 percent while the S&P 500 was up to

28 percent, which is almost 10 times more.

In the past decade, Amazon had a total rate of return of 1209 percent, or Netflix had

You will never find such returns in the real estate world because, in the stock market,

companies constantly innovate to stay ahead of everyone else.

In 25 years, amazon grew from nothing to over a trillion-dollar company.

However, the business world is ruthless, today you are at the top, tomorrow your competitors

It isn't like real estate that sits in the corner and keep getting your monthly passive

When it comes to taxes, there are two approaches.

The stock price can go to a thousand percent, but you are only getting wealthier on paper.

If you want to materialize that wealth, you need to sell that stock where you have to

pay a capital gain tax, which is 20 percent for long term investments and can go as high

With real estate, there are multiple ways to avoid taxes and use that cash to grow your

For instance, instead of paying for the entire property upfront, you can deduct the portion

of your mortgages attributable to interest payments on your tax returns.

You can recover the cost of income-producing rental property through depreciation.

Depreciation expense often results in a net loss on investment property even if the property

This loss, as well as expenses, such as utilities and insurance deducted from ordinary income.

Even if you end up selling the house, you can avoid paying capital gain tax if you purchase

Tax benefits are quite decent in real estate.

But of course, its not all sunshine and rainbows.

Unlike stocks where you can read the financial statements of the company, do some research

about the company and decide whether it worth your money or not, real estate requires much

To find one properly rental property, you might need weeks if not months.

Once you start renting it out, you will come across whole different types of challenges,

such as finding decent tenants who can keep paying the rent and would take care of the

The house constantly needs some maintenance, something always breaks and needs to be replaced.

All that is going to occur additional cost and expenses.

That also means it might be difficult for you to move to a different city or a country

because your property might need you there all the time.

However, investing in the stock market doesn't have all those headaches.

You can simply follow the news and the performance of your portfolio from the comfort of your