Real Estate Vs Investing in Stocks.

Why Investing in Real Estate is More Profitable than Investing in Stocks

With the economy in the doldrums, what is the best way to generate income without having the need to slave your day away in a "cubicle farm?" Some of the popular ways to make huge money is to either invest in stocks or real estate. Certain experts, however, believe that investing in real estate is more advisable than taking a gamble at the stock market. Although investing in stocks promises huge profits, a recent study suggested that a property is the safest investment to make, especially with the ongoing financial downturn.

So why invest in real estate instead of buying stocks? Listed below are some of the reasons why:

  1. As we all know, shelter is one of man's basic needs. You need to have a house to live in. Business entities also require a place to operate from. These factors make real estate an integral part of our lives.
  2. The real estate market is not a volatile as the stock market. Prices don't go up and down in a blink of an eye. You don't go to sleep and wake up one day that your investments are worth 75% less than they were the day before. Because prices of real estate investments are not significantly affected by factors beyond an investor's control, you don't have to panic every time a terrorist group attacks the country or a huge financial corporation declares bankruptcy.
  3. Investing in real estate is better than investing in stocks because it gives you more control. You can decide on how a particular investment is to be done. You can come up with strategies that can help you boost your profits. When investing in stocks, on the other hand, you don't have a say in how a corporation operates unless you own the controlling shares.
  4. The stock market can affect anything and everything associated with it. If something goes bad with the market, it can be a black hole that can suck everything on its path. The good thing about real estate investing, meanwhile, is that most housing markets act independently of each other. Although there are underperforming markets in certain parts of the country, there are certain markets that are in good condition despite the ongoing economic recession.

With the right strategy, investing in real estate can yield high returns.

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