Ken Himmler.com

If you have ever done any research into the investment world, you are no doubt aware of all the benefits that come with owning a house.  For the past half-century, it has seemed the best way to calculate someone’s financial standing was to look at how they handled their housing.  For years, experts have been explaining about the benefits of investing in real estate. 

Jack Hough, a financial writer for Yahoo.com,offers a different opinion.  When it comes to investments, Jack says that it is best to pay cheap rent and invest all the money you save into the stock market.  He believes that stocks are more reliable in the long run and that investors will benefit more from stocks than real estate investments, especially during the recession.  “Basically,” he says, “houses produce poor returns…while stocks and other investments produce good ones.”

This may sound confusing at first, but Jack does have some sound reasoning for this statement.  He makes the argument that single-family homes do not actively produce income for their owners.  Houses do not constantly seek ways to increase their value independent of the families living in them.  On the contrary, houses have a way of ‘wearing out,’ which ultimately leads to depreciation in value over time.  Stocks are just the opposite.  Companies are always looking for new ways to increase their value, which ultimately spells success to stockholders who invested in those companies.

Jack lists many other reasons why real-estate investments might not be the best idea for people looking to get the most of their money.  His investment strategies are sound, and his reasoning is logical.  Depending on where you are living, it may be wise to do some research when considering the best housing option for you.  I would strongly encourage you to read Jack’s article for more reasons why renting might be your best investment option today.