Your portfolio depends on your choices and preferences. Some may reap benefits from Real Estate while some gain from stocks. The question whether Real Estate is a better investment of Stocks is subject to personal choice. The only difference is the tangibility. Real Estate can be touched and seen while Stocks are intangible. It is a human tendency to like something that can be felt and seen every day. Stocks are no less important.
How can one be benefitted by investing in Stocks?
• Investing in stocks has always proven to be fruitful in business. When you buy a stock, you are buying a part of the business, no matter how small or big the business is. You have the inner satisfaction that you are a part of the business. These stocks, in the long run, give more returns that one can imagine.
•With a greater quality of stocks, one is investing in, the returns will be proportionate. Bigger the company, bigger the returns will be. Apart from the return that is sure to come one’s way, cash dividend is also something that one can gain. So it is equivalent to hitting two birds with one stone.
•What can be a better way of earning a profit without having to do anything for the company? Yes, stock investment is such. You don’t have to stress for the running of the company although you own a part of it; yet, you receive a share of the profit earned.
•Investment in stocks requires lesser capital than investing in Real Estate. With stocks as low as Rs 6000 a month, you can reap good profit; however, with Real Estate, you need more money to buy. Comparatively, in stocks, you pay less but get more and in Real Estate you invest more to get equal or more amounts in future.
•Stocks can be sold instantly and several times in a minute without the wait time. Real Estate, to be sold needs to be waited for long. What saves time? You got the answer.
•Borrowing is possible against Real Estate as well as stocks. However, when you borrow against stocks, it is fairly easier compared to borrowing against Real Estate.
Of course, with so many benefits of stocks, you do have to encounter few cons too. It is true with everything on the planet.
How can one be benefitted by investing in Real Estate?
Investing in Real Estate is noticeable by people around and therefore, more people like to do this over any other investment for showing off to over other benefits.
•Every person grows up hearing about the importance of owning a property be it a residential property or commercial. As a result, more and more people tend to bend towards Real Estate investment over others.
•Psychologically speaking, Real Estate is something that you can boast of to your friends and colleagues. People can see it and as they say “seeing is believing”.
•With Real Estate investment, you know what is happening as you can be physically present and check on it. With Stocks, you have no say. You need to trust the management and higher authority running the show. You are a silent spectator.
•The resale value of a real estate has always been on the rise. With majority investing in Real Estate, the competition is quite perfect with no scope of monopoly. With better location and facilities around the property, one can get a higher price when the need arises to sell it.
•It is the most traditional way of investing and therefore, the safest too.
Like Stocks investment, Real Estate too, has its cons and we can’t separate that from any of the investments. Without risk, there can be no gain and that’s true for everyone. People investing in Real Estate are investing in Stocks too and vice-versa. It absolutely depends on the interest and motive. Your personal motive does play a vital role in deciding where to invest for a better portfolio. Understanding your needs, risks, and level of profits that one can easily earn from either stocks or real estate, one needs to take the final call.
Any investment is a good investment as long as you know what’s happening on the other side. So, before investing blindly only because some people have recommended, you might be in the thick soup. Your priorities and the priorities of your friend might be different. Make a checklist and see what your plans are for the next few years. It doesn’t matter whether you invested in stocks or real estate if the profit is good and can benefit you in your tough time; you took a wise decision for sure.