Many times, you tend to ask yourself this question, which is a better investment between real estate and stock? Both real estate and stocks are a good investment; however, no matter how good and promising they tend to be, one would always have the edge over the other.
Then the big question, which of these two has the edge over the other? Real estate or stock? Although there is no common answer regarding this question and most people answer it based on their preference and what they invested in. Nevertheless, there are some key factors which will be highlighted and explain in detail that you need to consider and which after reading, would aid you in deciding on which is the best.
The amount you want to invest with
The first question you should ask yourself is, which of these can I invest in with my capital? While you can invest in stock with as low as $1000, real estate will consume a reasonable amount of money. This is because; you’d love to have your investment in a location that is promising and appreciate quickly.
Although, the rate for stocks varies depending on the company you want to invest in. You’d like to invest in a company that has a great history, but the amount involved is low compared to real estate except you’re a lover of socks and wish to invest more on it.
Being in control
If you’re someone who loves to have everything under his control, this will interest you. Real estate is illiquid while stock is liquid. Nonetheless, both have a limit to which you can control your income, rate, and many more.
For example, in real estate, you’ll be the one to call the shot once you have a vast knowledge of what you’re doing while stock, on the other hand, is based on your instinct. You don’t have what it takes to determine the situation of things; you can only forecast and hope things would go according to your predictions.
Your motive as the investor
The motive behind investing can also influence your decision. Stock is volatile and therefore, tends to generate income within the space of one year or less. This means if you’re looking for what you can invest in that will generate money within a short period; stock is one of the numerous options considered best for this.
However, if you’re looking for an investment that can generate passive income for you without nursing the fear of going bankrupt within the next minute (except in rare cases), then investing in real estate is your best bet. It doesn’t appreciate immediately, but when it does, you’ll have a goldmine at your disposal.
Stock comes with high risk, and this means you don’t know what the future holds but only hope on your prediction to come true. This doesn’t negate the fact that real estate has a risk, but it’s minimal compared to real estate.
So if you are not a high-risk taker, real estate is your best choice, and if you are, then you can opt for stock if all other reasons interest you.
Although there are other reasons, however, with the points above, you should have made your decision already. Nevertheless, whatever the decision you make, ensure to employ the service of a professional to guide you through.
ACORB connects investors with passive real estate investment options in the U.S., including commercial property, apartment buildings, and groups of houses.
If you’re looking for somewhere to start, get in touch with us today to see how we can help your money work for you.