Which is a Better Investment: Real Estate or Stocks?
The question is similar to asking which is better – apple or rose? Honestly, the mindset of investing in real estate greatly differs from stock. Today, we have come up with the pros and cons of both to give you a better clarity.
What does investing in real estate mean?
Real estate investment is the investment on a physical property. You can buy a 3 BHK apartment in Kolkata and rent it to 3 different tenants who have agreed to share the apartment or simply buy a property and sell it in a higher price, when the market is high. The return in such investment is guaranteed.
What does investing in stocks mean?
Investing in stocks mean you are investing in a part of a company and when it will profit you, will get paid for what you owned. Though it sounds simple, in reality it is not that. The stock market is a very tangled concept to deal with.
That is why we at Usashi have decided to open up the advantages and disadvantages of both and straight come to the point.
Pros of Real estate investment
- High Security- You can see and show your property. You are not investing in something that is liquid in economic terms.
- Getting a loan is easy-peasy.
- Fraud free- No not entirely, but if you do your paper works accurately then chances of fraudulent behaviour is very little.
- Gives you a sense of property owning.
Cons of real estate investment
- There is too much of responsibility to handle.
- When the property is unoccupied, you still have to keep counting bills for its maintenance.
Pros of investing in stock
- There is no other wealth maker in the world like this. Seriously, people are not successful in business only due to the fact that people are buying their products rather people are buying their shares.
- You basically do not require doing anything or showing up anywhere.
- Here buying and selling are a matter of few seconds.
Cons of stock market investment
- If you lose control over your greed, you will end up losing everything like a betting.
- The market fluctuates like mad, there is no guarantee.
- Here you own something that you cannot see, fraudulent behaviours and ill advisors are always in search of easy targets.