Investing in Real Estate Vs Stock – Which is Better?

There’s one major difference between investing in real estate vs. stock. In the stock market, you’re basically investing for capital gains vs. cash flow and have no control. In other words, you’re investing for capital gains for the hope that it increases over time but with very little control over the value increase or decrease. Most investors in the stock market, other than those who invest for cash flow dividends, invest for capital gains in stocks. On the other hand, investing in real estate gives you full control over your cash flows and assets.

Investing in real estate vs. stock

Benefits of investing in real estate

1. Thorough evaluation of investment
With real estate, you’re less likely to be defrauded because you have the ability to evaluate your investment comprehensively on a regular basis. In other words, you constantly know the condition of your property and its current and potential value.

2. Constant profits if you find reliable tenants

Real estate investment can be highly profitable if you rent out the property. You need to look for reliable tenants who’ll pay their rent on time every month, or you’ll lose money. However, renting property to tenants can be challenging because the property needs to be occupied on a full-time basis. Otherwise, you’ll lose money on your investment.

Real estate is an investment option that reaps rich rewards for its owners and has been around for centuries. Whether the investor if from the elite business class or from the simple working class, real estate presents a steady stream of opportunities.

Benefits of investing in stock market

1. Enormous profits if you find reliable companies

Companies such as Microsoft, Yahoo, and Google have generated billions for their investors, and therefore, if you find the right company to invest in, you can reap enormous benefits. You can find a stock for a startup company or other unknown stock and see if it’s a good investment. However, before you buy any stocks, you should do extensive research on the companies you wish to invest in.

2. You can invest whatever amount of money

With stocks, you don’t have a mortgage so you can invest any amount of money that you want. This is the reason why there are some investors who’re both interested in the multi-billion market and can trade in it. For them, pulling out isn’t an option. Again, it’s easy to cash out your stocks and get dividends if you’re short on cash.

The answer to the question, “Which is better between investing in real estate vs. stock?” is different for every single person. Everyone has different credit ratings, expenses, and annual incomes. If you’re looking for a good long term investment, then, real estate might be ideal for you because houses appreciate in value over time. On the other hand, if you don’t have a lot of money to invest, then, the stock market is probably the best venture for you to invest in.