Williamson County
Investing in real estate, step 4: Calculating your potential return on investment: Many times people ask me whether it is best to invest their money into real estate or in the stock market. Unfortunately, the answer is always, “Well, it depends.” It depends on your investment needs. Are you near retirement? You’ll want to be in an investment that carries less risk. (You don’t have many years of earning power to be able to take advantage of compounding returns). Are you just starting out with lots of debt from your first home and college loans? (You’ll need to look at how much you are paying out in interest on your debt versus how much you’ll be earning on your investment). Regardless of the situation, it is always wise to select a great tax or financial advisor to guide you in your decision-making. It is beyond the scope of a Realtor’s practice to give investment advice. But what we, as Realtors, can help you do is calculate your rate of return on investment if you decide real estate investing is for you.