All investments come with pros and cons. Here’s a look at how real estate compares to other popular investment types.

Real Estate Vs. Stocks

Real estate is less volatile than stocks, whose value can rise or fall more quickly. But real estate is less liquid than stocks: It’s easier to sell your stocks and gain access to your money than it is your real estate investments.

Real Estate Vs. Bonds

Bonds are one of the safer investments. You usually won’t lose money by investing in them. Their gains tend to be smaller, though. You have the chance to make higher gains by investing in real estate, though your risk of losing money is also higher.

Real Estate Vs. CDs

Investing in CDs is similar to investing in bonds: These are among the safest of investments, and it’s rare to lose money when investing in them. But like bonds, your gains are generally lower than what you might earn when you invest in real estate.

Real Estate Vs. Mutual Funds

Mutual funds are a long-term investment. Generally, if you hold onto your mutual fund investments long enough, they’ll increase in value, though appreciation is not guaranteed. Like with stocks, it’s easier to invest in mutual funds than in real estate. Real estate investments, though, can provide a hedge against the economic downturns that can cause mutual fund investments to fall in value.