Real Estate Investing vs Stocks
While there are multiple options in the market to invest in, two of the most popular amongst these are Stocks and Real Estate. Both these options have their own advantages and disadvantages but it originally depends on the requirement and motive of an individual behind his investment. Do you plan for a long-term investment bearing long-term returns? Or do you plan on making a one-time investment and then bearing smaller and larger returns from time to time. This article will probably help you on arriving at a wiser decision.
The traditional way of investments and the most popular is the Stock market. Everybody at one point in time has invested in stocks. While there are some reliable stocks of big companies which promise long-term returns, there are some highly volatile stocks as well. After the big American Economic Fall, one of the biggest disadvantages with stocks is that they might at any point in time, without any warning go in the negatives and you can rarely do anything about it. Also, the return on investment from stocks is relatively low compared to other sources of investments. However, one of the advantages with stocks is that too enter this market and to actually make an investment, you do not need a huge sum of money. You can actually start with a very small amount and eventually with the liquidity in your hand, invest in bigger stocks thereby taking larger stakes.
However, with the changing trends and people’s perception after the Recession people have now turned to a more sure side of investments which is Real Estate. It is widely known that property, no matter the type, size or style is an asset and people have now actually started investing huge sums of money on real estate. A property is something which is tangible and present in front of your eyes. Even though the initial investment in this is pretty huge but so are the returns. People usually cover up their principal amount from renting out their properties or selling them off for the good once the market value of that property rises. Even though it might take a few years but unlike the stocks, a property is never useless as you can use it for multiple purposes. An asset never becomes a liability unless used in the wrong manner. Another advantage of investing in real estate is that there are higher chances of buying it for less price and then selling it for huge profits.