STOCKS VS REAL ESTATE 
No, I am not about to stir a controversy, relax. It is actually not in my nature to be confrontational except when it becomes unavoidable, you know what I mean.
I just would like clear the air about some miss conceptions.
My first world out should be that there is no better investment vehicle amongst the two. Neither is good or bad in it self.
Now, to answer the question direct, what your take will be should depend on a number of factors. It is very relative. Relative to the amount of money you have to invest, the nature of the money in question (e.g. borrowed, available for a long or short time), your understanding of the investment of choice or who is consulting for you, expected return(s) and so on.
At an instance depending on these variables, it could be that the best decision will be to invest in real estate as against stocks and otherwise at another time.
Let me admit upfront also that I have a bias for real estate, largely because it seems to be the sector I understand the most but I will try to be as objective as possible here because an not out to be an apostle of a particular market. I am an investor. It is not really an issue of which market do you prefer to play as earlier said. Taking that real estate is at the core of almost every business/activity and it’s certainly at the core of most people’s wealth. I also subscribe to the fact that in order to build your wealth and improve your business smarts, you need to know about real estate like Raymond Albert Kroc 1902 – 1984 (Mc Donalds)
Suffice to say the two options have a common bond allowing money to work by itself for you. This way as informed researchers in wealth creation curricular all over the world have agreed, is a major way of building wealth without changing your productive time.
Both options are also capable of being handled by experts on behalf of the investors, while the time for generating primary income remains unaffected.
Great! So what will it be, Real estate or Stock Market?
While not being able to fully compare the two options given the various intangible considerations in decision making, let us consider some basic parameters for this exercise:
|
REAL ESTATE |
STOCK MARKET |
|
Serves as a hedge against inflation and exchange fluctuations in the long run |
Fluid and highly susceptible to value erosion in extreme circumstances |
|
Provides basic social and psychological needs of people and engenders sentimental attachment |
Impersonal and without any need for loyalty |
|
Requires huge capital outlay |
Relatively low capital outlay |
|
Highly rigid to liquidate |
Meets liquidity needs and readily tradable |
|
Physical and tangible |
Intangible and exists only on paper |
|
Allows investors wide latitude and time to decide one way or the other |
Requires swift decision and action to stay afloat |
|
Relatively sluggish in reacting to external economic and other stimuli |
Highly vulnerable to external stimuli |
|
Legal and administrative impediments in verification and perfection of interest |
Devoid of legal and administrative impediments especially with the CSCS initiative |
That the choice of an investor depends on his/her circumstances and investment objectives can not be over emphasised.
Those who need to maintain liquidity no matter the amount will be better off in the Stock Market. Talk to your stockbroker who must be active in the market and up-to-date to be useful to you.
Those who have heavy capital to keep away for long term appreciation and as a hedge against inflation real estate is it. Talk to me- 08033074913.
For now, do not send your money to bed while you work for more; allow it to work for you, while you work, play and sleep. It’s the secret of success revealed.
