Updated almost 7 years ago on . Most recent reply
Inflation in Rental Property Vs Stocks
On the surface, it may seem like getting a 10% return with rental property (with a property manager) is the same as getting a 10% return in the stock market. However, it seems to me that the 10% return in the stock market is really an 8% return in real dollars, assuming 2% inflation. The 10% return with rental property, however, doesn't have to be reduced to 8% because the rent (along with expenses) will increase at about the same rate as inflation.
Am I thinking about this correctly? Perhaps I need to ask this question in a stock market investing forum, but is there a counter-argument that would make stocks as attractive as rental property?