Comparison Between the Best Investment of 2025 and Other Possible Investments
In our previous update, to answer the question Where to invest in 2025? we examined the factors that will shape the next 12 months. This included geopolitical scenarios and new economic dynamics, evaluating what makes an investment optimal. We concluded that income-generating U.S. real estate represents the best investment for 2025.
In this further update, we aim to compare the best investment for 2025 with each of the other opportunities available for an investor searching for where to invest in 2025:
- Real economy investments
- Stocks
- Bonds
- Funds
- Equity ETFs
- Bond ETFs
- Commodities
- Gold and other safe-haven assets
- Bitcoin and other cryptocurrencies
- Non-income-generating real estate
- Income-generating real estate in other countries
Investments in the Real Economy vs. Best Investment of 2025
Investing in the real economy—whether in one’s own or others’ businesses, listed or not—means participating in the company’s economic activity. This involves current expenses, investments, revenues, profits, taxes, and earnings. Following the post-pandemic boom, which saw companies grow and revenues often increase by double digits (leading to inflation), the situation has stabilized, with China’s GDP down to 4.7% in 2024, the U.S. up to 2.7%, the Eurozone at 0.7%, Mexico at 1.4%, Colombia at 1.5%, Brazil steady at 3%, Argentina plummeting to -3.1%, Vietnam at 5.3%, Thailand at 2.5%, and India at 6.9%.
All these national growth prospects—mainly driven by local companies’ economic activity—are significantly lower than the profitability of rental properties leased to working families, which allows investors, wherever they are, to invest in the United States. In addition to the immediate and reliable profitability from rental income, capital gains from the eventual resale of these properties contribute to investment returns.
Stock Investment vs. U.S. Income-Generating Real Estate
Those wondering where to invest in 2025 might consider stock markets and selecting individual stocks. This approach requires knowing which indicators to evaluate to identify the best stocks of 2025 (cherry-picking) and understanding which ones to avoid, necessitating a method (technical analysis, fundamental analysis, or volume analysis) and an awareness of when to buy and when to sell (market timing).
While this type of “investment” might theoretically yield returns comparable to or higher than U.S. income-generating real estate, it is essentially a business activity (trading) that incurs significant transaction costs with each operation. Therefore, it cannot be considered a pure investment, as it consumes time and energy that could otherwise be devoted to work, family, or personal well-being. Furthermore, earnings are not guaranteed; according to brokers, 9 out of 10 traders are actually losing money.
Bond Investment vs. Best Investment of 2025
Investing in bonds is far from trading and is better suited to the profile of a sophisticated saver—a smart individual looking to achieve steady returns from their savings while taking on minimal risk. Toward the end of 2023, when central bank interest rates hit their anticipated peak, bond values were very low, and coupon yields were high (including corporate bonds). However, by 2025, after a series of rate cuts from the Fed and the ECB, bond values have risen slightly (making them less attractive), and returns have declined and are likely to decrease further.
Coupon yields and bond values are inversely proportional: as one rises, the other falls, and vice versa. On the other hand, in the case of income-generating real estate, both rents (and thus owner yields) and property values tend to increase over time, following the dynamics of the real estate market.
Fund Investment vs. U.S. Income-Generating Real Estate
Those who want to fully delegate their investment decisions may turn to an investment advisor, often affiliated with their bank. Based on an assessment of one’s goals, risk tolerance, and financial situation, the advisor typically recommends a range of investments through mutual funds. It’s worth noting that while this advice is presented as free, in reality, advisors are compensated by the funds they recommend. Beyond the clear conflict of interest this entails, one should consider that these active funds carry high entry, maintenance, and exit fees—which can eat up part or even all of the annual return. Moreover, despite being actively managed (with analysts and traders continuously buying and selling), most funds (98%, according to some sources) underperform relative to benchmark indices.
With income-generating real estate in the United States, immediate returns come from rental income. The property’s value appreciates along with the real estate market, and all standard costs can be estimated in advance: property taxes, insurance, and a property manager who also handles rent collection. Since the property manager directly disburses the rental income to the owner, the latter effectively receives net returns (typically ranging from 6% to 10% for most income-generating properties on this site).
Equity ETFs vs. Best Investment of 2025
For those looking to invest in stock markets in 2025—without engaging in active trading, without having returns diminished by mutual fund fees, and with significantly reduced risk of losses—equity ETFs are a viable option. These are low-cost passive funds that mirror the performance of the indices they track. Without needing to search for the best ETFs of 2025, certain options like those tracking the MSCI World or S&P 500 provide substantial internal diversification and deliver solid returns (around +8% annually for both S&P 500 and MSCI World). However, historically, markets drop by 10% or more once every two years, by 15% or more every three years, and by 20% or more every six years, while real estate crises are far less frequent.
If these returns are comparable to the value appreciation seen in the U.S. real estate market—specifically discussed and analyzed in the article Capital Gains and Long-Term Investments—it’s essential to note that the top-performing ETFs are often accumulation funds, which do not distribute dividends but reinvest them. In contrast, income-generating real estate in the United States provides fixed monthly yields as established by rental agreements.
Bond ETFs vs. U.S. Income-Generating Real Estate
Bond ETFs are also low-cost passive funds that replicate indices—in this case, bond indices. Compared to individual bonds, they allow for greater diversification across maturity dates and geographic regions, reducing risk and exposure to a single country or company. However, they suffer from the same limitations as bonds, with the difference that the highest-performing bond ETFs are accumulation-focused and thus do not distribute coupon payments.
Commodities vs. Best Investment of 2025
Those considering commodities as an investment option in 2025 should bear in mind that understanding these markets in depth is crucial. Additionally, constant monitoring of market trends and an element of intuition (or luck) are necessary to predict which commodities will experience a significant demand increase outpacing supply. Much like stocks, commodity trading is more of an active endeavor than a straightforward investment, with uncertain profit potential balanced against the definite loss of time and energy.
In the post-COVID recovery phase, nearly all commodities saw growth, driven by industrial demand and a rebound in consumption. However, trends in 2025 are expected to normalize, with some commodities appreciating in value and others declining, as observed in 2024 and 2023. This variability depends on demand and supply, availability, weather events, geopolitical tensions, and more. Thus, it’s very challenging to forecast the best-performing commodities of 2025.
Gold and Safe-Haven Assets vs. U.S. Income-Generating Real Estate
Gold generally appreciates for three main reasons: during crises or uncertain economic outlooks (when gold rises as stock markets fall), in times of excess liquidity (where both gold and financial indices increase), or due to central banks building up gold reserves (in this case, gold and stocks are uncorrelated). In 2024, gold set multiple record highs, reaching new peaks as all three scenarios converged. However, a potential resolution to conflicts in Ukraine and the Middle East—likely influenced by the upcoming U.S. election (Harris vs. Trump)—and a reduced threat of China invading Taiwan could deflate gold prices. Additionally, gold is inherently non-yielding; simply owning it does not generate income, as is the case with other safe-haven assets.
In contrast, income-generating real estate offers owners a return through rental income, while property value is less affected by geopolitical factors and more closely tied to the U.S. economy (which is growing at three times the rate of the Eurozone) and the housing supply-demand balance in the real estate market.
Bitcoin e altre criptovalute vs miglior investimento 2025
When considering where to invest in 2025, many might look toward the cryptocurrency market. Questions like How much will Bitcoin be worth in 2025? and What will be the best cryptocurrencies in 2025? are among the most frequently searched online. Although it’s impossible to make precise predictions, there are a few certainties about this market:
- Bitcoin and cryptocurrencies are highly volatile. Just looking at Bitcoin’s 2024 performance, which started at $44,003 in January, peaked at $69,666 by the end of March, dropped to $56,420 in early July, rose again to $67,845 in late July, then fell to $53,857 in September, and rose again to $68,397 in October, illustrates its unpredictable swings.
- Governments and Central Banks have a complicated relationship with Bitcoin and other cryptocurrencies. After years of neglect, authorities are now moving to tax and regulate these assets, especially in light of numerous scams involving supposed crypto exchange platforms. It’s also rumored that some countries may be considering including cryptocurrencies in their official reserves.
- While termed virtual currencies, very few people actually use them for everyday purchases, and even fewer businesses accept them—with exceptions primarily in “blacklist” countries like the UAE, which raises concerns. As a result, cryptocurrency markets are mainly speculative, which fuels their high volatility.
- Cryptocurrencies are primarily used as currency on the dark web and among criminal organizations.
- With no underlying asset, there is a remote yet real risk of a total collapse. A significant drop in user interest, even speculative interest, could lead to a devaluation to nearly zero, similar to what happened with NFTs, which fell from $0.74 in March 2018 to $0.0035 by the end of 2024.
In contrast, U.S. income-generating real estate has a very tangible foundation (namely, bricks and mortar), is governed by well-established laws that tend to favor landlords, and the housing demand that supports the real estate market is both consistently present and generally increasing over time.
Non-Income-Producing Properties vs. Income-Generating Properties in the U.S.
Those who looking for where to invest in 2025 had turned to the real estate market but to a non-income property, came close to the best investment 2025 but not close enough. A nonincome property offers certain costs related to its purchase, any renovations, annual property taxes, and its ongoing maintenance-necessary, especially, if the house remains empty-against an uncertain and unpredictable capital gain given by the difference between the purchase and sale values.
In contrast, an annuity property in the United States offers earnings that largely cover the cost of ownership, minimizing maintenance and offers the owner a net income of 6 percent to 10 percent annually. In addition, with a view to reselling a property in the United States, since many potential buyers are investors, the fact that the house is already rented is an added value that allows it to sell at a higher price, thus, generate a greater capital gain.
Income-Generating Properties Outside the U.S. vs. Best Investment of 2025
Last, let us analyze the opportunity that comes closest to the best investment 2025. Those looking for profitable solutions to invest in 2025, who choose to focus on other real estate markets, when faced with the promise of profitability of even more than 10 percent, must keep in mind that in many cases – for example Dubai, Bali and some resorts in Thailand, Cyprus or Georgia – the advertised profitability refers to the short rental market. These mind-boggling ROIs do not take into account the high costs of management, property management, promotion on platforms, and all the other costs, such as maintenance and repairs, that come with renting your home for a few days, for one or more weeks, or at most a few months. If, on the other hand, the advertised returns refer to the growth in value of the property – this being unpredictable, as we have stated many times – it is probably a scam or misleading information, followed by asterisks and microscopic legal notices.
Those, on the other hand, who wish to buy a property, perhaps, in their own nation and then put it up for rent, probably, on a long-term basis to avoid the operation or costs associated with short rentals, have to be content with returns of between 2 percent and maximum 5 percent gross (in many cases lower than a far more and safer and exchangeable government bond of average maturity). This is related to the unique characteristics of the U.S. housing market where, in contrast to Europe, Latin America and Asia, most people of working age, even those who could afford to buy, do not want to buy the home they live in because they know they may have to move from city to city or state to state. Moreover, legislation in most countries tends to protect non-paying tenants more than the landlord. In the United States, on the other hand, a landlord who proves that the tenant is not paying can get an enforceable eviction by the sheriff.
Where and with whom to invest in 2025
For those wishing to seize the opportunity represented by income properties in the United States, i.e., the best investment to make right now, Opisas is the ideal partner with whom to do so:
- offers dedicated assistance in their home language and country, including through more than 3,200 partnerships around the world
- has long experience and reliability, having been on the market since 2008 and having more than 4,300 trades to its credit
- offers clear and accurate monthly reports
- offers a truly comprehensive pre-purchase service, from setting up a U.S. company to opening an account in the U.S., from finding properties tailored to one’s needs to finding financing, from opportunities to diversify one’s portfolio to the possibility of buying both existing properties and those to be built, and even with regard to immigration procedures, if in addition to investing in the U.S. one wishes to relocate
- offers an equally comprehensive after-sales service, from company registration and renewal services to accounting services with statements prepared by U.S. accounting firms, from entrusting all management to a local property manager to renovation services, from brokerage to customer care that is always available
- also offers resale assistance with partnering real estate brokers who advise on the sale price and take care of the promotion of the property itself, giving it maximum visibility
Make the best 2025 investment with Opisas
If by now you have figured out where to invest in 2025 and have decided who to do it with, write to contact@opisas.com to make an appointment with an advisor who speaks your language.
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