Stocks Vs Real Estate Returns – Which One is Profitable for Long Term Investment?

By Advisorymandi
1-January-2019 11:59:07 AM
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Achieving a high rate of return is a primary objective of the people when it comes to investing. However, it is easier said than done. Investing your hard-earned money can be quite a challenging task, especially when you do not have any knowledge with regard to what to invest or where to invest? There are hundreds of investment opportunities but it also cannot be denied that it is extremely difficult to invest in all of them. When it comes to investing, then the stocks and real estate are the two main investment options. However, it is debatable which one is a better option for investment between the two? There is not a perfect answer to this question because it entirely depends upon the preferences and financial objectives of the investors. It is altogether a tough choice.

There is no doubt that the real estate and the shares, both are an excellent source of investment and go a long way in building the wealth for a long period of time. Furthermore, each investment option has its own advantages and disadvantages. If you are confused which option to select for the purpose of, then let us have a look at the prominent reasons for investing in both the options and find out the best one.

 

Reasons for Investing in the Stock Market

If you have any long-term goal, then it makes a great sense to invest some portion of the money in the stock market to realize your financial objectives.  A very important fact that cannot be ignored here is making an investment in the stock exchange is considered to be a risky affair because it does not remain stable. Sometimes, it may touch the record levels and another day; the market can crash, leading to the disappointment among the investors. Well, you are right on your part, but it is time to get rid of conventional thinking and start investing in the market because of the following prominent reasons:

 

To Keep Up with the Inflation

The prices of the products, services, and other things do not remain constant. They keep on changing and if your financial position is not strong to keep pace with the rising inflation, then you may experience some inconvenience in the years to come. What’s the need for stashing money into the bank account, if you are not able to meet your requirements in a hassle-free manner. It is important that you must start investing in the stock market, take advice from the top advisory companies, pick the best stocks and get profitable returns. You must analyze the fundamentals of the shares before investing so that you can get profitable returns and achieve your financial objectives.

 

Growing Money

We all know that money is important to care of our needs without any difficulties. It is important to make your money grow to get rid of the problems, you may encounter in the future. Keeping this in the mind, it is imperative that you must undertake some research work and invest in the shares of those companies that are showing consistent results. By this way, you can ensure that the money is growing for you automatically without making much effort.

 

Creating Wealth                                  

Investing in the stock market is absolutely essential to create or build wealth. Many people first save the money and then invest their savings on different financial instruments over a period of time. In this process, whatever extra income has been accumulated from the investment like the bank fixed deposits (FDs), mutual fund dividends or income from the sale of property can be reinvested further in buying the shares of the reputed and financially sound companies. Hence, in this way, you can initiate the investing process and continue building your wealth.

 

Reasons for Investing in Real Estate

When you take a decision to invest in real estate, the first of all it is important to know that you are purchasing a physical land or property. For a large percentage of people, investing money into the real estate gives them a sense of happiness or fulfillment. The returns from the real estate tend to vary considerably across different cities and locations. The property may be residential or commercial; it entirely depends upon your choice. If you make a plan to rent out your property, then you are guaranteed a regular rental income. Furthermore, the value of the real estate appreciates over a period and you can plan to sell your land if you get a good price in return. Here are some of the prominent reasons for investing in real estate:

 

Tangible Asset

Real estate is something that you can actually feel and see.  This is one of the prime reasons why people prefer to invest in real estate. On the other hand, stocks are only the ticker symbols or numbers that can only be seen on the screen. You can inspect your property and if it is in excellent condition, then you can prefer to sell it according to the market situation.

 

You are more in Control

When you put your money in the real estate, then you are actually the owner of your property. Whether you make your own home, give it on rent or sell, it is your decision. When you invest in any company, then you have to make your strategy upon the decisions taken by the management of the company.

 

Appreciation in the Property

Most of the people have the habit of purchasing a piece of land and keeping it for a long period of time. They do so with anticipation in the rise in the prices of the property over the period of time. Following this kind of investment is actually a good option because by this you can be guaranteed of a lump sum amount of money that helps you meet your financial goals.

 

Real Estate Vs Stocks: Which One is Better?

It can be said without any doubt that investing in the real estate or stocks is like making a choice between the Mercedes car and Bentley. Both of them have their own merits and demerits. A systematic investment plan and comprehensive research work are required before undertaking any kind of investment. Real estate can give you the excellent returns but for this, you are required to select the right property. Investing your money in the wrong property can only lead to the loss and nothing else. The same thing can actually be said for the stocks. If you invest in the company without any research work, then you are only staring at the loss and it may quite a challenging task for you to achieve your financial objectives.

 

Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. We do not suggest to trade based on the data available on this website. We wont be responsible for any financial loss. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.

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Author: Advisorymandi

AdvisoryMandi is India's most trusted Stock Market Advisory marketplace covers NSE, BSE, MCX & NCDEX. Invest with confidence and harness the power of AdvisoryMandi to make smarter investment decisions in Stocks, Indices, Commodities, Forex & IPO.

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