It’s been years now that the experts are presenting their views about the stocks and real estate. Both the investments have their advantages and disadvantages. However, after the deep research, we’ve found different aspects that make real estate investment better than the stocks.
Many viewers will disagree with this opinion that we’ve just mentioned, but after reading the complete details, they would agree that real estate is a better investment than the stocks.
We’re not saying that the stocks can’t bring you any profit but what we are trying to state here is that if you need quick and guaranteed results, then you should go for the real estate.
The stock market is also a convenient investment platform, but the risk factor in the stock market is greater than the property.
Stocks can be very volatile; especially when there are significant challenges that a company or economy has to face. Also, your decisions within the stock market can often be irrational because stocks are often emotional investments.
Let’s talk about the significant benefits of real estate market that make it a better investment than stocks.
In the real estate business, the investor has complete control over his investment. You can grow your investment as you want. In this business, you do not only have the opportunity to buy the property below market value, but you can also increase the value of your property after purchasing it.
A property that needs repairs can easily be purchased below market value. A property that needs repairs decreases the buyer pool, therefore, the buyer can get a discount on such kind of property.
You can increase the value of the property by finishing a basement, adding bathrooms or doing many other things.
Around 4% or less is the highest dividend that is paid annually in the stocks. It’s true that an increase in the value of the stock can increase your investment’s value, but you cannot realize that money until you sell the stock.
Many Real Estate Investors look for a property that has 15-20 percent or more in cash on returns. The good thing is that you can realize the 20 percent return immediately.
Buying more rental properties, adding value through expandability or paying down the mortgage are a few ways of reinvesting the 20 percent return of the property.
The cash flow produced by real estate and many options that cash flow gives you are the main factors that make real estate a better investment than stocks.
You can enhance the appreciation of your property by doing interiors or increasing amenities to make it more attractive to renters or buyers.
In the stocks, you are at the mercy of the market, and you can’t make any changes.
There are many other aspects of real estate that make it a better and valuable investment.