Stock Market Vs Real Estate: Which Is The Right For You?
According to the recent survey, only 55% of Americans have investments in the stock market – far lower than the 65% of 2007. Real estate investments, on the other hand, are far behind with only 27% of Americans investing in it. People who find themselves in these kinds of investment are tirelessly trying to explain to people why their investments are better compared to the other. It’s a neverending debate of which one is better.
For the past years, stock markets and bonds are usually the ones dominating this list. Data shows that more people prefer putting their money to these two. But recently, real estate investment is starting to take over the list for the first time in three years. These statistics only serve as a guide for us and it doesn’t mean that you have to play by them. Here are some comparison between the stock market and real estate to help you decide which of these two will suit you the most.
Real estate investment is when you put your money into a piece of land, house, or any kind of property. One of the common choices among people who invest in real estates is apartment rental, house buy-and-sell, and leasing building. Most people see real estate as easy money, especially to those who put their properties for rent. This is because they can receive rent payments on a monthly basis. Real estate is a physical property that’s occupying space, and owners have to pay property taxes and have to spend money for maintenance, which can be a major downside for some people.
- Real estate is a more familiar and comfortable concept to those who belong to a middle-class family. They are more exposed to their parents telling them how important it is to own a house or a piece of land. Some parents even leave their kids with land titles and home declaration they have acquired over the years.
- Stocks don’t have the physical component that real estates have which means it’s a more tangible investment. There are lesser cases of fraud and scams since you can do an ocular survey on the piece of property before buying it. You can redo and renovate the place before sealing the deal, unlike stocks and bonds where you have to trust other people to do their job.
The stock also stands for ‘shares’. In layman’s term, buying a stock means buying a share of the company. If the company you bought stocks from sells coffee, you are entitled to a percentage of their profit depending on the share that you own. For example, if a company divides its share to 10,000 and you buy the 1,000 of that, it means 10% of their profit will be given to you.
- The best thing about investing in stocks is it is proven to make your money roll. Buying stocks from a well-established business is far more advantageous compared to starting your own business. You will simply invest your money and watch it grow. There is also a higher chance to increase your profit if you keep your share for long periods of time, especially if the business you invested in is doing very good.
- You don’t have to wait for years before you can gain from stocks. Most people do stock trading where they buy and sell their shares. This allows you to diversify your investments. Unlike real estate where you have to wait for years before the appreciation rate is good enough. The stock market is a better option for those who want to slowly build their wealth.
Asking the question which is better, stock or real estate, is like asking people to compare chocolate and ice cream. Both options are good, it only depends on a person’s preference and personality which to handle. A tech-savvy person might find online trading simple, but complex to those who don’t have a good background with computers. Owning an apartment for rent can be perfect for a working person, but too boring for a person who has all the time in the world.
Both investments can make us earn money. The most important thing to decide is which of these two will most likely fit your personality. In the end, you are more motivated if you love the field you are currently at.
More in Advisor
Want to Move Abroad? Here Are Some Financial Matters You Need to Understand First
If you are a traveler, there would always be that place you’ll fall in love with so much that you have...September 29, 2020
Everything You Need to Know About Setting Yourself Up for Financial Freedom In Your 20s
Are you in your 20s and completely clueless on how to achieve financial growth? Fret not, because you are not alone...September 25, 2020
Tips for Organizational Leaders to Provide a Better Workplace For Employees With Kids
Juggling kids with work isn’t something you can do with your feet up and a cup of coffee in your hand!...September 24, 2020
Demi Lovato Pours a Significant Amount to a Studio City Farmhouse Months After Her Engagement
Former Disney Channel child star Demi Lovato just got engaged to artist Max Ehrich and although a wedding date has yet...September 24, 2020
A Lawyer is Crucial to a Successful Business: Here’s How To Find the Right Attorney
The reason for hiring an accountant for the business is obvious – you basically want someone to deal with numbers. However,...September 23, 2020
Serena Williams Reveals Her Father’s Precious Financial Advice To Her
The more wealth you have, the more challenging it is to control it. Celebrities suffer the most from this fact, and...September 21, 2020
Financial Advantages That The Military Offers to The Men In Service & Their Families
Life in the military can be tough, even if you don’t actually go to the battle. Army training alone is pretty...September 17, 2020
Here’s How You Can Retire at 40 & Still Enjoy Your Life
Okay, be honest; after reading that headline, you thought this was a sham of some sort, right? Retiring at 40, who...September 13, 2020
Selling Your Business Can Be As Hard As Founding It
Separating from your partner breaks your heart, but believe us, leaving the business you built from scratch can have the same...September 8, 2020