7 Reasons Why Real Estate Is Still One of the Best Investments Today

Dana+Jeff Luxury Homes

11/15/24

When it comes to investing, many people debate the merits of real estate versus the stock market. Both options have their advantages, but let’s take a closer look at some critical questions that highlight why real estate—and specifically, owning a home with a 30-year mortgage—remains one of the smartest investments you can make today.


1. Can you buy $500k worth of Google, Apple, Microsoft, Coca-Cola, and Verizon stock with 20% down and finance the rest?

Answer: NO.
One of the most unique benefits of real estate is leverage. With just 20% down (or even less in some cases), you can control a high-value asset like a home. In contrast, stock purchases require the full investment upfront. This leverage amplifies your ability to grow wealth through real estate.


2. Can you pay a lower tax rate on stock capital gains?

Answer: YES… but…
While long-term capital gains taxes on stocks are favorable, they pale in comparison to the tax-free gains you can achieve in real estate. As a homeowner, you can exclude up to $250,000 (single) or $500,000 (married) of your profits when you sell your primary residence, provided you meet the IRS criteria. That’s money in your pocket—completely untaxed. Stocks simply don’t offer this kind of advantage.


3. Do fixed-rate mortgage monthly payments rise over time?

Answer: NO.
One of the most reassuring aspects of owning a home with a fixed-rate mortgage is predictability. Your monthly principal and interest payments stay the same for the life of the loan. Compare that to renting, where payments can increase year over year. This stability is especially valuable in an era of inflation.


4. Can stocks lose their value—quickly?

Answer: YES... and NO.
While the stock market can offer impressive gains, it’s also volatile. Stocks can drop sharply and, in rare cases, become entirely worthless (think Enron). Real estate values can fluctuate too, but a fully insured home won’t “disappear” or become entirely valueless. Even during market downturns, the intrinsic value of a home remains, as it serves an essential need—housing.


5. Can you live in your stock portfolio?

Answer: NO.
You can’t live in your stock certificates or digital brokerage account. A home, however, is more than an investment—it’s where you live, build memories, and cater to one of life’s most essential needs. Even if your home value fluctuates, it provides a tangible benefit that stocks cannot.


6. Can you lower an interest rate on a mortgage if rates drop?

Answer: YES.
Unlike stocks, real estate financing is flexible. With refinancing options, you can take advantage of lower interest rates when the market shifts. This ability to adjust makes real estate a more dynamic and resilient investment.


7. Can you avoid monthly payments to live somewhere?

Answer: NO.
Unless you’re living with family rent-free, you’ll have to pay for housing one way or another. With rent, those payments go into someone else’s pocket. With a mortgage, every payment builds your equity—a form of forced savings that grows your net worth over time.


A Classic Quote Revisited

Warren Buffett famously said, “The best investment you can make is in yourself.” While he wasn’t specifically talking about real estate, the sentiment rings true. A 30-year fixed mortgage remains one of the best tools for building long-term wealth. Sure, mortgage rates have risen compared to the ultra-low rates of the past decade, but when you weigh the benefits of equity growth, tax advantages, and housing stability, the value of homeownership is undeniable.


Is a 30-Year Mortgage Still a Good Deal?

Absolutely. In fact, it’s one of the smartest financial decisions you can make. It’s a tool that allows you to lock in today’s costs while benefiting from tomorrow’s appreciation. And let’s not forget—you’re not just investing in bricks and mortar; you’re investing in your future, your stability, and your ability to grow wealth over time.

So, the next time you’re wondering where to put your money, consider the unmatched benefits of owning real estate. It’s not just an investment—it’s a cornerstone of financial security and a key to building a legacy.

What’s your answer?

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We offer the highest level of expertise and service with integrity. Jeff Biebuyck & Dana Olmes are Luxury Homes Specialists in Calabasas with a particular expertise in representing residential estate properties throughout the West San Fernando Valley, Conejo Valley, Malibu and Greater Los Angeles area. As consummate professionals, Jeff Biebuyck & Dana Olmes provide their clients with the highest level of service to reach their unique real estate goals.

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