Investment has always been a point of concern for the investors. Investing in the stock market and real estate market has always been a tough thing to decide. Both the areas have their own pros and cons. A small amount can be used while buying stocks. For real estate buying the capital amount needed is usually larger. People invest to save money and to generate more for their future and for their families. The investment plan may be for the life after retirement so that the financial circle may remain stable or it may be for the saving purpose of college/university etc.
Real Estate VS Stock Exchange
Investing in real estate or stock is solely the investor’s own choice and the decision is dependent upon the existing finances, the goals, tolerance of risk and the style of investment. Both the investments have their own risk factors involved. Similarly both have their own positive points that attract the investors. Stock exchange deals with liquid cash while real estate deals with property (land, houses, shops etc.) buying stock is to have a small amount of share in someone else’s company while in real estate you are a sole owner of the property unless the investor has added partners themselves.
Real Estate investment is usually a safe investment with a larger return at the time of maturity. Though it is a long term investment, it is eventually a win-win investment. Being an owner of your own home is better than having a tiny amount of shares in someone else’s organization. Real estate is an asset that makes the investment safe and is not affected by the rise and fall of the stock market. The investment can be enhanced by working with contractors or real estate agents. By giving your property on rent you can also generate a fixed amount each month.
Although the Stock exchange requires a small amount of investment, it is a very inconsistent investment. Every day is unpredictable. The tax advantages are limited. It requires more attention and needs a very active and vigilant investor. The help of experts is available but they charge a lot of money for advising and then again it is all a game of predictions, their opinions can turn out to be wrong. It has high risk involved as compared to real estate.
Real estate is a better option when it comes to investment. It requires more capital but has more financial security and stability. It does not require everyday vigilance or the need to hire an expert for advisory purposes for the everyday market trends. The stocks are purely dependent upon the economy, inflammation. Real estate has many tax benefits that can be availed by the investor such as depreciation deduction, property tax deduction, insurance premium, maintenance cost etc. however the stock investors are burdened with tax when they have to sell their shares. Furthermore the income through real estate investment can be predicted because there is not much frequent fluctuation in that sector. Money can be borrowed for investing in real estate because it is not very volatile whereas it is highly volatile when it comes to the stock market. Overall the benefits of investing in real estate are much more than the stock exchange.
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