Some people will prefer investing in stocks since the investment is liquid and allows them to get their money with ease when they need it.
Others prefer investing in real estate because the investment is tangible and they can see what their money is worth.
Both investments are great, and people who prefer either one do so for good reasons. Let’s look at why real estate is considered superior overstocks.
Control and Leverage
You have much more control when you invest in real estate. You are your own boss, and you can schedule house improvements, choose when to sell, raise the rent, cut maintenance costs and market your house as you will.
Though you are still guided by the economy of the neighborhood, you are more in charge when it comes to making decisions – you can leverage different economic aspects accordingly to make more money.
When you invest in a private or public company, you are likely a minority investor left at the mercy of the management and at times the major shareholders.
You are the only person who cares about your money. The management can embezzle funds, make the wrong decisions, engage in unnecessary spending, and much more.
Physical/Tangible Investment with Less Unpredictability
You can see, touch and even feel your investment if you are into real estate. You can run to your house if anything goes wrong seeing that real estate is a pillar of survival besides food and clothing.
This is unlike stocks which have been reduced to just numbers.
With stocks, there is a daily ticker symbol, and you can tell when you go higher or lower. Property appreciates in normal cases. As the economy of a neighborhood grows, so does any property in that neighborhood.
You can predict the value of a home, but predicting the value of a company will not be easy as there are hundreds of factors involved.
An individual can be more successful in stocks than in real estate because they understand the trade better. Just take your time before investing and do your research.
Put a Value on Property
You can evaluate and put a figure on your property by subtracting expenses from income. As an investor, evaluation is very important as it allows you to see where you are headed.
With stocks, you are left at the mercy of the accountants of the company you invest in, among other players.
Companies have a way of playing with the numbers and at times can look big when in the real sense, they have exaggerated expenses. You can never really tell the value of a company unless you are the one balancing the books.
Invest In Real Estate Today
Real estate is largely a safer investment with less risk than stocks. Despite the differences, however, you need to proceed with appropriate caution when investing in either of them.
Making money in either real estate or stocks requires you to understand the ins and outs of the market. Even though real estate is considered better, going it the wrong way will result in a loss. Choose wisely and avoid loss.