Real estate has always been a true interest of mine, and I am starting to get my feet wet in what it takes to understand the game and to make proper purchases that will help me enhance my wealth over time. Obviously, I’m still a beginner with a lot to learn. But I know this much – if buying property is something I want to be serious about, and something that I want to do in the upcoming years, I need to make that decision as soon as possible. With my limited income as a part time Intern Pharmacist (full time in the summer), my yearly income is limited to about $25-30,000 per year. Now, I know that dividends aren’t “guaranteed”, but companies make it their priority to pay out their dividends on a monthly or quarterly basis. But who knows what can happen to those dividends in a market crash? Now, don’t get me wrong, dividends are a definitely a great way to earn passive income. But as income comes, there will be more opportunities to max out on stocks that pay great dividends.
Properties, on the other hand, are not always at an investor’s disposal. One seemingly needs to know the right people, have the right connections, and be in the right cycle to get the right deal. And that’s what it’s all about! My point is, there are so many options and so many routes to increasing passive income, and one route that may not be preferred for one investor can be the route that leads another investor to success. All in all, money is money. The point is to max out on it. As a young investor, I’m still trying to learn the trends of the stock market and the housing market, and I want to be able to balance both and be successful at both.
Ideally, I would be a very happy investor if I could succeed in finding the right property to buy at the right time and getting positive cash flow from it as soon as possible, while being invested heavily in stocks that pay strong dividends. It all sounds very simple when I talk about it, but believe me - I know the kind of work that it requires. For now, it’s hard to tell what I’ll end up doing because of my limited annual income. I’m leaning to going with the property simply because of how strong the market currently is, it’s possible there could be a crash in the next couple years. Of course, I’d have to find the right deal to buy property. It’s all about the right deal.
What do you guys think? Real estate or dividends? What are your investment plans in the future? Tell me in the comments!