Which one is profitable investing in stock or in real-estate?
Real estate is safe and profitable if you want to make a long term investment.
Investing in stocks can yield much greater returns than property but as with such things, higher potential returns can also lead to much higher levels of risk.
As Mariyamma says, real estate is a much safer investment over the long haul (although it's not entirely safe - look into negative equity as evidence of this), whereas stocks may be preferable for shorter term investments if you don't mind carrying the additional risk.
I would say the question is not which one is more profitable, but which investment works for your personal risk level and investment plan. Both are very profitable, but it still comes down to does the individual have the education, talent, and stomach to invest in one or the other. I prefer stocks simply because my assets are very liquid. I can close a position with the push of a button. I also believe that every investment has its time and know is the time to buy real-estate.
I prefer real estate over equities for two reasons. Firstly, real estate offers higher returns and lower risks than equities, because most of the time you are using the bank's money, not your own. When you rent out real estate, you are essentially making a profit from three different sources: rent, amortization, and capital appreciation. Equities only offer capital appreciation and dividends.
The second reason is that real estate gives you more control over your investment. Unless you have a controlling share in a company, your stocks are at the mercy of the company's management. In my opinion, that is the greatest risk of all. Real estate at least gives you the option to control what your property looks like, who rents it, etc.
All in all, you can make large profits using both investment options. Most people invest in what they personally like, so if you hate real estate, I would recommend stocks, and vice versa. The most important thing to remember however, is that no investment can be profitable without the proper education and experience to guide you.
Both are profitable although real estate I think is more susceptible to market cycles. In America I think real estate would be a really good investment over a 10-15 year period and even beyond. Although in Australia where house prices only peaked six months ago and with more interest rate rises, yes I said interest rate rises on the way, more and more people in the land down under are going to default.
Here in Australia the real estate sector has only just started slowing down.
I personally like stocks because they are so nimble, and I don't need to take on any debt.
I keep a balanced portfolio of about 70% investments and 20% trading and 10% cash, I mainly focus on income type investments which I add to my trading profits together with any business income to re-invest.
Also with stocks you can get quite creative (legally) with franking credits which is just the icing on the top.
Personally I am using stocks to get me into property without taking on much debt.
When I do get into property I will no doubt have a offset account and use the equity to snap up bargains.
Personally I think its better to start off in stocks, then go into property.
It's easier than the other way round!
My husband says real estate. We've done both. I agree with my husband. Only because you can see the profitable results a lot quicker.
I would say investing in real estate is lot more profitable. I have been renting my home in Killeen since past 2 years and getting great returns from it. You must also go for it. The management is also very easy..All thanks to my property management company- Lone Star Realty.
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