Investment profits: An expert advocates for real estate and stocks, suggests higher returns
In a recent BÖRSE ONLINE YouTube interview, financial expert Martin Hackler shed light on the ongoing debate between stocks and real estate as investment options. The interview provided valuable insights into the professional opinions surrounding this topic.
Historically, securities (stocks) have yielded higher returns than the broader real estate market. Over the past 20 years, the MSCI World, a stock market index, has delivered an annualized return of 6.6%, compared to the 3.09% annualized return on German real estate. This translates to a significant difference in returns, with the MSCI World yielding 224% in returns over the past two decades, while German real estate prices have increased by 84%.
During the boom phase from 2010 to 2021, investors in German real estate couldn't beat stock market returns. This challenges the common perception that real estate is the ideal way to build wealth. In contrast, stocks offer better returns, risk, and diversification compared to real estate, even with the decreasing leverage of financing.
It is worth noting that the general public often perceives stocks as a casino and real estate as a safer investment. However, this perception is incorrect. The higher effort, maintenance, and transaction costs associated with real estate do not necessarily yield higher returns compared to stocks.
Investing in securities (stocks) can bring more returns for investors compared to real estate. This is a crucial factor to consider when making investment decisions. However, it is essential to remember that this article does not provide expert advice regarding the new property tax or discuss any potential consequences of such tax.
In conclusion, while real estate can be a viable investment option, it is crucial to consider the historical returns and the potential for higher returns in the stock market. The interview with Martin Hackler provides valuable insights into this debate, but the article does not discuss the specific details of the interview's content. It is always advisable to seek professional advice before making any investment decisions.
