Investors always want to put their money where there is little chance of them losing it. The real estate market enjoys relative stability unlike the stock market that may promise profitable returns but remains largely unpredictable. The real estate market has been around for a long time. Land and properties have always been seen as assets to be cherished and coveted. On the other hand, the stock market when compared to real estate remains a relatively new development.
Both markets are good sources of investment and it is possible to win and lose large amounts in both fields. However, some people will argue that the stock market poses a greater risk. Stocks are portable and are easy transactions that require just pushing a few buttons. A buyer chooses how much he wants to sell or buy. So how much profit you want to make is largely determined on how much cash you have at your disposal for shares or bonds. Alternatively, the real estate market requires a considerable amount of cash because you are buying properties and land. Furthermore, while this requires regular maintenance, there is nothing to renovate when it comes to stock options.
A persuasive argument that some people hold about stocks is that the profitability is without limit. This is why you can buy the stocks of a start-up company with your savings today and sell for some millionaire cash tomorrow. Imagine if you were one of those college students who sniggled at Mark Zukerberg back in the days instead of investing into his project! It is true that stocks can plummet. But nothing can stop them from growing astronomically as well.
Real estate is all about location. If you want to invest in this market, never spend money on places with prospects. Go for ready-made places where people love, where tourists visit and where people want to live. Investment in this field might take a while before you see any profits. But they are well protected and enjoy tranquility most times unlike the stock market which is more about people investing money that they are willing to lose if need be.
The real estate market gives you control over your asset. You are investing in something that is tangible. So there is a better possibility that you can keep it until a good price comes along. Another advantage for investing in real estate is that the property helps to improve your standard of living and income. You can rent out the property and start recording profits almost immediately. On the other hand, your stock market predictions might go against the grail and this might take you years to sell.
Real Estate vs Stock Market Investing
