Are you looking for viable long-term investment but torn between real estate and the stock market? Come on board as we analyze the reasons why real estate is better off than the stock market for both short and long-term investments.
Real Estate Vs. the Stock Market
Although investing in the stock market is much more comfortable, real estate investments have higher returns through capital appreciation, tax advantages, and rental income.
The Stock Market provides an equal opportunity for every investor to make returns. Investing in Stock exchange is relatively easier than real estate. Anyone with the proper economic background can go into the stock market, but it requires a high degree of competence to invest in real estate confidently.
However, if you are considering going for a more reliable option between the 2, real estate is your best bet.
Here are 2 reasons why real estate investment is better off than the stock market:
With a real estate investment, you don’t need charts and graphs to tell you how much your investment is worth and how much returns to expect. Real estate investment like rental properties provides you the cash almost instantly if you acquire the right properties.
Unlike the stock market, cash flows from real estate investments increase with inflation. The value of your investment is directly proportional to the current cost of living. This means your property increases in value when there is inflation.
Real estate offers various investment options that bring you to cash almost instantly. You can purchase a property from a “distress” sale, hold and sell off for a higher price a few months later.
You also have the option of buying the right property and rent it monthly for regular income. All these options are safe because your investment will not be affected negatively by inflation.
Lesser Risks and Better Returns
You cannot predict the stock market accurately as the value goes up and down in an irregular pattern. An average stock market investor cannot correctly tell the returns from investment and will only “Hope” to make good profits.
Most times, stock market investors buy and sell at the wrong time even when it seems right, this is because there is a thin line between profit and loss.
Real estate investments thus have the edge over the Stock market because you don’t depend on emotions to make good returns. They are enough facts available to help you make a better choice when you invest. Hence you will hardly be forced into a “panic sell.”
Also, you can hold your real estate investments through ups and downs in a long-term while you enjoy the returns from rental income which is positively affected by inflation.
Unlike the stock market, the value of a real estate investment generally rises in the long run. The price of your property increases over time, thus lesser risk when compared to the stock market where the risks are always the same.
You have better control over your assets with real estate investments. You can choose to exploit short-term opportunities or hold your property to build more equity with time.
The information above will help you make the right investment choice.