Real estate investing is rewarding and of course associated with high risk while stock market dollar cost averaging can give you an idea and predict the market (with probabilities) using trading chart (technical analysis) and fundamental analysis. But, which one can give you the most high return on investment? Is it stock market dollar cost averaging or real estate investing.
We will give you a sample scenario on how investors makes money on both real estate investing and stock market dollar cost averaging.
Real Estate Investing VS. Stock Market Dollar Cost Averaging
Real Estate Investing
You purchased a property and want to liquidate it (turn it into cash) is not easy. However, in the long run, your property will appreciate value. Some real estate investors makes money on
- flipping properties (buy and sell)
- build and sell properties
- real estate rentals/leasing
- property value appreciation
Well, you think it’s easy but it is not. But it is worth trying. Many billionaires get rich through real estate. If you have patience and love to own a land or property, then real estate investing is for you.
Important: Real estate might seem very rewarding, for those who can patiently wait and can sell their property fast.
Stock Market Dollar Cost Averaging
You cannot borrowed money in the bank by just telling them you want to invest in stocks. If you want to use leverage (borrowing money in the bank), real estate and business entrepreneurship is highly recommended.
Sample scenario of stock market dollar cost averaging;
XYZ Sample Inc.
| Date | Per Share | Investment | Total Shares |
| Jan 1 | 2 | $10,000 | 5,000 |
| March 1 | 1.5 | $10,000 | 6,666 |
| June | 2.5 | $10,000 | 4,000 |
| October | 1.8 | $10,000 | 5,555 |
Maybe you asked, how can I make money on this stock market dollar cost averaging? Well, you have accumulated total number of shares overtime.
21,221 Shares you want to sell it at target price of $3.00 per share? How much gross? $63,663
Right, you got 63,663 US Dollars out of using $40,000. You got 59% for just simple stock market dollar cost averaging.
- $63,663 Gross
- – $40,000 Capital
- $23,663 / $40,000 = 59%
Well, the lesson is simple. Invest whether you’re in real estate or stocks, just invest and let the money multiply. That’s how rich people stay rich. Let me know your thoughts about this article. Would you invest in real estate or try dollar cost averaging in stock market? Try both and you will get rewarded. Stay tuned to InvestmentTotal.com – trading and investing tips! Leave a comment below!
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