Real Estate Vs Stocks is a never-ending debate. While the former is a tangible investment, the same is not true for the latter. Tangibility is also the primary reason Real Estate is still considered a more reliable investment over stocks by conventional investors.
But there is more to the Real Estate Vs Stocks debate than physical security alone. Many aspects of investing in both fields remain alien to the general public. In this blog, we dissect both the investment option so that you can make a well-informed decision when you have to choose between the two.
As far as price appreciation goes, Real Estate like Gold comes with some degree of assurance. The same cannot be said with an equal amount of conviction for stocks. The external factors that affect stock prices are far too many and winning in stocks requires in-depth knowledge of the share market.
On the other hand, Real Estate prices are dependent on a handful of factors such as demand and supply, the reputation of the real-estate developer, infrastructure in and around the Real Estate, and home loan rates. It is much easier for the common man to understand these factors and make a wise buying decision.
Unless you are a broker, you won't buy a piece of Real Estate and put it up for sale immediately. Real Estate is like fishing; you must wait to catch big returns. Moreover, Real Estate is familiar territory for most and hence easier to avoid fraud.
The rules, however, are completely different for stocks. You have to keep an eye on the market trends, plan accordingly and diversify as much as possible. More often than not, you might have to sell and buy stocks more than once during trading hours. This is no less than space science for a normal person. If you are investing in stocks, the best advice would be to invest via a stock consultant.
Real Estate investment is non-liquid. You cannot sell a piece of Real Estate immediately after purchase. In most cases, people wait for years to gain maximum return on investment.
On the other hand, stocks are very liquid and designed for an easy sell. But liquidity is a double-edged sword. You can sell well-performing stocks for instant gains, but liquidity can also cause stock prices to change drastically. Indeed, stock investment offers greater flexibility in terms of trading, but it does come with risks attached.
The risk factors multiply by manifold in stock investment. Especially, if the company whose stock you own ends up being bankrupt, your entire investment will be dissolved in a matter of seconds. And a company can go bankrupt within a matter of days.
Real estate investment is not pegged to sentimental market behaviour. There are few surprises, and the market remains stable more often than not.
So all things considered, stocks are no doubt attractive, but real Estate is still an investment for all ages. It never gives you sleepless nights as stocks do. Plus you can always put some capital and turn your property into a source of good passive income till the time you are ready to sell it. KGK Realty brings you attractive real estate investment options in and around RIICO Industrial Plots, Jaipur. KGK Realty is a trusted name for tax-efficient, safe and hassle-free Real Estate investment. Contact us now!