Real Estate vs Financial Investments

Is really real estate investment a better idea than investing in financial options?

To tell you the truth I invest in both real estate as well as stocks and shares, and here’s what I have discovered.

1. Real estate is a tangible asset

Financial options like stocks, shares, bonds etc. are great but they exist more as papers of transactions rather than actual assets you can use. Where as an property has a physical presence, it is permanent and hence also a dependable asset.

2. Not affected by global events

Stocks/shares are heavily dependent on global events, for e.g. A crisis in Wall Street may trigger such events that you may find yourself on the losing end. Real estate on the other hand is immune to such triggers and even though sometimes local events may affect its value, it is usually temporary in nature.

3. Tax payment advantages

Tax benefits are a huge added advantage if you have taken a loan to buy a property.

4. Easier to control

As a shareholder you are one of many other owners of an organization and you have no decision making powers as to the future of the company. But in real estate you are the absolute owner of your property and can take decisions keeping in mind your advantages or your disadvantages.

5. Can be utilized in adverse situations

What happens when the stocks fall? Tales of financial bankruptcy are abundant in the news. Whereas there is nothing so drastic in real estate; even if the price slump prevents you from selling your property it can still be used to live in or even to rent it out. Hence there is always some kind of earning/profit you are getting from your property.

While at the end of the day the decision always lies with you as to what you want to invest into, my experience tells me that investing in real estate most of the times means lesser risk.

Hope I have helped you in deciding, if you feel otherwise do post your views here.

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