Real Estate or Stocks?

Tuesday Nov 03rd, 2020

Share

 

Real Estate vs Stocks: Which is Better For You?

 

I recieve many messages from previous clients or potentail ones asking some advices regarding : Which is better investment; Real Estate or Stocks. 

It wasn't easy to find a simple  answer, yet here are some ideas: 

First of all, by buying stocks you -acutally- buy a little piece of this or that company , it doesn't take much time or money to buy them. on the other hand, when you buy real estate, you buy physical land or a property, most of the investors take some easy ways like renting out to collect rents. Others prefer renovation then flipping it . For those who collect rent, they have full confidence in the appreciation; since the property vaule will go up! 

Second: When you buy a property you have an asset that can be leveraged , it's not the case with stocks. 

Third :  Real Estate needs a lot of research with the help of a Realtor who's a good experience in investment, also if you're a flipper make sure that you've studied the costs. Stock market is so risky such as; market problems, economy, inflation, price fluctuations and so on.. You may loose them all if not prudent. 

Fourth: What are the Pros of Real Estate: 

  1. Great Income
  2. Leveraged.
  3. Tax adventages. 
  4. Hedged, in case of inflation. 

              Cons of Real Estate: 

  1. A lot of works
  2. Expensive
  3. Transaction costs

Bottom line: To choose betweent these two kind of investments is a personal choice depends what you really want, but bear in mind that Real Estate Investment is the first choice to the majority of people for the reasons described above. 

Let me know if you have any question! 

Comments

Charles McLaughlin Nov 4, 2020
Thanks for the insight!

Post a comment