There’s one major difference between investing in real estate vs. stock. In the stock market, you’re basically investing for capital gains vs. cash flow and have no control. In other words, you’re investing for capital gains for the hope that it increases over time but with very little control over the value increase or decrease. Most investors in the stock market, other than those who invest for cash flow dividends, invest for capital gains in stocks. On the other hand, investing in real estate gives you full control over your cash flows and assets.
Investing in real estate vs. stock
Benefits of investing in real estate
1. Thorough evaluation of investment
With real estate, you’re less likely to be defrauded because you have the ability to evaluate your investment comprehensively on a regular basis. In other words, you constantly know the condition of your property and its current and potential value.
2. Constant profits if you find reliable tenants
Real estate investment can be highly profitable if you rent out the property. You need to look for reliable tenants who’ll pay their rent on time every month, or you’ll lose money. However, renting property to tenants can be challenging because the property needs to be occupied on a full-time basis. Otherwise, you’ll lose money on your investment.
Real estate is an investment option that reaps rich rewards for its owners and has been around for centuries. Whether the investor if from the elite business class or from the simple working …