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Which is a better investment idea? Real estate investment vs stock market

It has been seen that not even a single time real estate beaten stocks in terms of returns and the top examples of those stocks are Johnson & Johnson, Microsoft and Dell particularly when there is a reinvestment in the stocks. Let’s start with defining both

Real Estate

Investing in real estate means buying of a physical property or land. Whereas, sometimes real estate cost investor each month while investor holds it. For instance, investor had a piece of land with a hope that it will be sold to developer and in the meanwhile he/she gets out of cash because he/she has to pay for maintenance and tax. In addition, there are some of the real estate firms which have been generating cash by thinking about the apartments, rental houses and buildings where you will get the checks each month from the tenants thus you might also need to pay the expense and to keep the differences as the profit.


With respect to the difference, it has been noted that when a person buy shares of stocks then it refers to buy a piece of a firm. Whether the company is involved in making cones, ice-cream, selling furniture, manufacturers or videos games creators, it is important to cut off the profit for each of the share you are owning. As an example, if the company has been owning around 1000,000 shares that are outstanding and you are having to own 10,000 shares, this means that you have been owning 1% of the entire company. The illustration in the wall street makes it quite complicated than it is thus the board of director of the company who are usually considered as the stock holders and keeps an eye on the management decides that how much profit will be gained and how much cash will be used as the dividend.

Following are some pros and cons which clearly identifies that which type of investment is better.

Investing in Real Estate


  • There are major people who seems to be much aware with the real estate as an investment rather than the stocks
  • The real estate investment has been considered as tangible and you can touch and live in it
  • It is quite easier to neglect the fraudulent activity with the real estate
  • The idea of debt leverage ratio has been considered to be safe with the real estate rather than stocks
  • The idea of real estate has been considered to serve historically as a hedge of an effective inflation


  • There will be a need of major work to make an investment in the stocks
  • This could also cost you money and could make you out of pocket every month
  • There might be an increase in the value of the real estate and in an actual idea, it does not mean to increase much when having factor in the rate of inflation

Investing in Stocks


  • The returns in the stock market has been considered to be shown as consistent and a source of good wealth creator over the 100 years
  • You could also own the part of business along with the stock shares without having to do any other work
  • If you own any share in the company that pays dividend and share prices, the amount of dividend might grow over the time
  • You might also make diversification in an easy way with the stocks in comparison with the real estate especially in concern with the mutual funds
  • The stock investment has been seen to be liquidated so the money would not locked and hold on for weeks or for some months
  • You can easily borrow when something is against the stock’s value and its easy with the consideration of real estate


  • There are successful investment stock that usually have an unemotional strategy that seems to be complicated for major investors
  • There might be major fluctuations in the stock prices in the short run that could leave an inexperienced investors to be worried
  • The stocks of dividend stocks might looks like that they have not grown in the value at all during the conditions of market.

Best Regards
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