Start with the job
Stocks: fractional ownership, daily pricing, low transaction cost at scale. Real estate: local market, leverage, physical work, and lumpy buys and sells. Choose based on skill, time, and how you want to interact with the asset.
Why the comparison trips people up
People compare past US stock averages to their uncle’s rent story without matching leverage, taxes, or the hours spent on repairs.
Apples to apples
For stocks, note fees and tax location (401k vs taxable). For property, include mortgage, insurance, vacancy, capex, and property management—not just purchase price and rent.
Pair two calculators
Mistakes
- Ignoring illiquidity: you cannot sell 10% of a duplex on a bad Monday.
- Assuming rent always covers mortgage plus margin without a vacancy buffer.
Use the calculator
FAQ
- Should I skip stocks if I own a home?
A primary home is mostly housing consumption, not a diversified stock portfolio. Investments still matter for non-housing goals.