Every individual in their lifetime takes extra measures to secure themselves financially. And if you are also of an age who manages all finances by yourself, chances are you are looking for investment opportunities that will help you in the long run. Living in this massively globalized world, we have tons of investment options we come across on a daily basis. But the most talked about and investigated is the Real Estate and Stock Market sector.
Real Estate Investments vs Stocks
Like everything else, both things are equally preferred and are relied upon by millions of people worldwide. Let’s compare why investing in each sector would bring you what results? Not to forget, your financial goals will play a crucial role in whether you should invest in real estate or stocks. Apart from your responsibilities or commitments, your lifestyle, income, and investment psychology are equally important considerations. Let’s compare why investing in each sector would bring you what results.
Stock Market
Investing in stocks means investing in a percentage of a company. As an investor, you have to do your research, review the potential company’s past performance, current position, growth potential, and purchase shares. After which you buy and own a percentage of that company. Your profits are determined by the performance of the company on the stock market.
Real Estate
You cannot just search for properties from the comfort of your own home, even though you may be able to discover a few properties online. You may have to make visits, examine the construction quality, look for guidance values, and ensure the property titles are legal. While investing in Indian real estate, consider the developer’s credibility, the locality, and the development. Even though there are no absolute right or wrong choices when it comes to investments, you could look at what is right for you and make that choice.
| Real Estate | Stocks | |
| Access | Must have a hefty amount to invest | Can get into the market with even less finances |
| Market Conditions | Market risks exist, but holding it until market prices rise will yield high returns. | Affected by market volatility. Impulsive buying and selling observed |
| Management Costs | Maintaining property time to time is necessary | Charges for brokers services |
| Liquidity | Liquidation is difficult | Easily Liquidated |
| Re-selling | Re-selling at the time when market conditions are beneficial helps the seller reap benefits | Quick reselling of stocks leads to losses |
| Returns | As the price increases, you can sell it at a profit or keep earning passive income in the form of lease/rent. | Healthy returns can be expected if sold on the right time |
Stocks are more liquid than real estate investments. When you want to sell your property, there is a long process involved, such as listing it, waiting for the right buyer, determining market value, and registering it. While this process may sound long, it also contributes as the main reason as to why more and more people make money in the Real Estate business. The owner is able to keep the property for as long as he can through stable market conditions, and once conditions improve, he can easily earn passive income/re-sell and make profits.
In contrast, if you wish to sell your stocks, you can do so within minutes with a trading account. As long as you’re careful and online, you can effortlessly sell stocks during trading hours. Compared to real estate, the process of selling and buying stocks is quick and hasty, so many people end up losing money and, the cycle keeps on continuing without any consistency.
In addition to generating income and a hedge against inflation, real estate investment offers tangible benefits. Hence, at Flivv Realty, we ensure that your investment is protected, and we assist you throughout your investment journey, educating you about the market conditions, involved with your investment. We connect you with the best real estate stakeholders as your time and money are our priority. To conclude, it is important to be mindful when investing your money regardless of what it is. If you are getting started with your investment journey, now is the right time to contact us.
