Choosing an ideal investment avenue for yourself can be an exhausting process especially if you are aware of the different options that are available. According to many investment experts, real estate and stocks are the best bet if we are looking for a new investment. While both real estate and stocks have their advantages, one can’t overlook the disadvantages as well. Here are some advantages and disadvantages of investment in both stock and real estate.
The advantages of investing in real estate is that firstly real estate includes houses, apartments and many other tangible things that middle and lower income groups are familiar with. Secondly, compared to stocks, property investment is relatively safer. The reason is that in property investment nothing is left to chance. However, the drawback of real estate investment is that while stock investment is pretty much straight forward real estate investment involves a lot of hard work. Also you need to pay tax on property investment but not on stock investments.The advantage of stock investments is that most of the market analysis has shown that stocks are much profitable as compared to real estate investment and if you decide to invest in the real estate market, you can only choose one type of property but in stock market due to the availability of mutual funds investors can choose from a wide range of stocks to invest in.
The biggest challenge while investing in stocks is that stock exchange is unpredictable, as there is no telling when the stock price will rise or fall.