Real Estate vs. The Stock Market: Jim Marchese on Choosing the Best Investment for Your Family

Mortgage NOW CEO Jim Marchese offers advice on how to make wise investment decisions.

Mortgage NOW CEO Jim Marchese has decades of experience turning a profit in the real estate market. Jim has also made wise stock investments in the last year. He offers personal advice and expertise to help investors accurately compare the real estate market with the stock market to decide which investment option is right for them.

“The opportunity over the next three to five years will be unprecedented with incredibly low-interest rates and buying power at 30 to 40% more than any other time in history when considering home purchase price and monthly costs,” Jim Marchese noted in June 2020. Bloomberg backs up this assertion, noting that no western central bank is expected to raise interest rates in 2021. Other experts point out that real estate investors can make a steady stream of income by renting out properties, a financial plan that Jim Marchese has frequently promoted for middle-class individuals and families.

However, even those who don’t rent out their properties will still increase their savings due to real estate appreciation. Property values rise and fall over the years but tend to increase long-term. The fact that real estate is stable is yet another reason why scores of investors opt to buy land over stocks and bonds. Paper investments may have the potential to be profitable. Still, they’re vague, and their value can sink if a company makes a wrong move or experiences an unexpected financial setback such as those presented by last year’s COVID-19 lockdowns.

There is also the fact that real estate investors can take advantage of substantial tax breaks that aren’t available to the average stock market investor. These breaks include mortgage interest rate tax breaks, credit for paying property tax, and a tax break on the private mortgage insurance needed to obtain a mortgage loan. Jim Marchese advises potential real estate investors to buy two single-family homes, one for themselves and the other to rent out. Even those who opt to flip a house instead of renting it out can get a big tax break on the sale’s profits by living in the home for a small period of time before the sale.

Granted, investing in real estate doesn’t have to prevent investing in the stock market. Jim Marchese pointed out that, during the COVID-19 pandemic, he promoted the purchase of real estate and invested in stocks from small, local airlines. Some of these stocks generated a 100% return as the companies fared better than expected when COVID-19 lockdown restrictions were lifted in different states. “The budget airlines are performing well because they are not bloated like the big players,” Jim Marchese noted at the time. Other investors also noted that buying stocks makes sense for individuals who can take advantage of financial benefits.

Anyone who has a company matching 401(k) plan, for instance, would do well researching stock and mutual funds options and invest in the ones most likely to generate long-term profits. However, it’s essential to bear in mind that the stock market can be far more unpredictable than the real estate market, and the return on investment is often lower than expected. What’s more, those who don’t hold on to stocks long-term (as would be the case if a person buys the stock for a 401(k) account) would wind up paying a high tax rate on profits generated from the purchase and sale of stocks during the year.

Unlike many other financial pundits, Jim Marchese has an optimistic outlook on the economy for the near future. He firmly expects the economy to rebound as states lift lockdown restrictions. However, as Jim notes, not all investments are equal. As the owner of a mortgage company, it’s natural that he would push potential investors to choose the real estate market over the stock market. However, Jim Marchese isn’t the only financial pundit to note that there are exceptional reasons to buy real estate instead of stocks, bonds, and mutual funds.

Historically low-interest rates may last to the end of this year, but there is no guarantee that they’ll be around in the next few years. Real estate is a tangible investment that rises in value long-term, makes it more stable, and in many cases, more profitable than paper investments. While there are benefits to buying stocks, and a person can certainly choose more than one investment option, Jim Marchese’s counsel to buy an extra home and rent it out is wise advice for anyone with a bit of extra cash who wants to turn a steady profit on the investment.

If you’re from New Jersey, Pennsylvania, California or Maryland and would like a rate quote for purchase, investment property or refinance go to Mortgage Now Inc..  Free free to apply online and ask for Jim Marchese for a personal consultation.

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