Stocks vs Real Estate
There’s always been a debate about these two investment options. Let’s have a look at which one is better:
- Buying: Buying stocks is comparatively easier than real estate as the latter requires a lot of physical effort combined with exhaustive background checks, paperwork and the likes.
- Cost: One can start investing in stocks even with a small capital, but real estate investments requires substantial amount of money either own or loans from financial institutions.
- Volatility: Real estate market is considered to be much more stable and generates stable returns over a period of time compared to stocks. Equity market changes on a daily basis and not everyone is guaranteed healthy returns unlike real estate.
- Tangible: You can see your property, feel it, be present in it and are in total control of it, when it comes to maintenance, finding tenants or selling it off. Stocks, on the other hand, only give you ownership of the shares of a company, but running the company is in someone else’s hand and the stock’s movement is no way controlled by you.
- Returns: One tends to thin equity/stocks give higher returns, but on a long term basis, it is found that real estate is one of the safest investments providing healthy positive returns without much of a fluctuation. Stocks might go really up one day and have an equal chance of crashing down the next day.
Investments are based on individual choices and priorities, but if one wants to be in the market for a long time and generate substantial returns including side-income, then real estate is the answer!