Invest in Real Estate or Stocks

Here is another financial question from a close friend.
He has some amount of earnings apart from the ones that he saved for his necessities. He would like to invest the earnings in some real estate or alternatively in stocks. He has some knowledge on stocks but, heard some people reporting bad experiences when the stock market crashed before. So, we have gathered different opinions over the net, answering the question: What is a better option – real estate or stocks?

“It's really tough to make a decision between the real estate or stock. The bare minimum you should do is to study the last decade's value of land or real estate versus the stocks. The stock market condition is heavily inflated, nowadays, but the same could be said for the estate properties too. Do your homework and take an advice of a financial consultant, then make your decision.”

“It all depends on your interests and there can’t be one straightforward answer because a lot of it comes down to your personality, preferences, and style. However, many people feel Real estate is often a more comfortable investment for the lower and middle classes and is always evergreen.”

“Ups & downs occur in both the stock market and the real estate market. Before investing in anything, you need some knowledge and to study the market to be prepared in case of emergencies or market collapse. If you already have knowledge in stocks, this is a good factor to consider investing on the stock market, compared to the real estate investing.”

“In every sort of investment, you have to make sure that you possess the knowledge about the area you would be investing in to. Consulting a financial consultant is also a good idea. In the case of a real estate investments, it is a fact that nowadays every Metropolitan city is growing by fits and starts and those cities are adorning themselves with multi-storied buildings. A huge amount of land which were barren for a long time has been used for industrial purposes. So, do your study about the neighborhood you would be investing in, and only then invest carefully.”

“Stock trading is certainly the better option and is much lucrative than real estate investment. Get in touch with a professional to get the minimum training or join a group of investors to learn more, share ideas and knowledge.”

“Investing in real estate is a great way to obtain cash flow, real estate investments will be a better option. Some advantages of real estate investments are:
1. Cash Flow
2. Capital Gains
3. Leverage
4. Inflation Resistance
5. Tax Incentives.”

“Investing in real estate gives higher returns than typical investments like stocks. These are the most considerable advantages of making an investment in income-producing real estate. The income stream it produces tends to be extremely stable and predictable. The income stream is partially passive. The underlying property will typically appreciate over time. There are tax benefits to investing in real estate that is not available with most other investments. Rental properties when purchased correctly generate significant cash flow. As good as the returns in real estate are when investing with cash, they can also be compounded significantly by using leverage.”

“Stocks are good if you can keep yourself updated, all the time, and would love to keep a close eye on the stock market. Otherwise invest in real estate.”