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Benefits of Real Estate Investment vs. Stocks and Bonds

Welcome to the RPM Blog

Welcome to the Real Property Management blog.  This is the first of what will be a continuing weekly blog on the news and activities in the property management industry.  At RPM, we operate in the North San Diego County property management industry.  We help property owners manage through a suite of tenant services, from background checks to filling and maintaining full properties.  We work to ensure that the property maintains its value and in excellent condition.  This blog will cover topics of interest to both tenants and property owners.

Benefits of Real Estate Investment vs. Stocks and Bonds

On Oct. 8th 2013 GLOBE NEWSWIRE printed an article stating, “As the economic recovery continues to build, Americans are again able to consume and invest; and with recent reports from the U.S. Census Bureau noting 34 percent of American households are rental units, investors are taking notice and rushing to reap benefits of placing investment funds in single- and multi-unit residential property.”  This statement points to a new change in the growth of the US economy from the 2008 bust that led the US and the world market into recession.  Keep in mind that there were numerous factors in the United States that caused the Great Recession of 2008, including failed banking reform that eased banking regulation and interest rates and the very nature in which banks were offering loans, which led to the recession.  And the most obvious fallout from the recession was in the housing market.

Since 2008 the economy has struggled and is now, five years later, on the cusp of recovery.  Now, according to the market, the time to invest in real estate is returning, moving away from stocks and bonds.  The cause for this may seem obvious, with the US Government shutdown during the beginning of October bonds were being liquidated by large investment firms in case the US defaulted on the looming debt ceiling crisis that was averted in on the last day possible.

Further, during the recession stocks and bonds didn’t reflect the recession.  As the United States entered into sequester because of the inability of the US government to come to an agreement and compromise in terms of the budget, stocks reached an all-time high.  In fact, the stock market continued to grow throughout the 2008 recession, which was part of the genesis of this article.

Now, however times have changed.  Investors should once again look to invest in real estate.  With nearly 35% of the US population being renters, the market is open and ready for investors.

RPM is open to accepting new clients and working together with them to ensure that the properties are maintained and to capacity to maximize real estate and real property investments.  Contact us today to learn more.

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