Shares/Stock Real Estate Vs. Stock: Which is a Better Investment?

Jasmine

VIP Contributor
If you want to invest this is the best time, stock market has gone down, real estate property prices have dropped, and even crypto prices have gone terribly low. However, if you are a newbie, you might be confused about where to begin.

You can start investing in stocks even with $100. However, that is not possible with real estate. You need a lot of money to invest in real estate.

Stocks are liquid income, you can sell your stocks whenever you want to get money instantly. However, real estate is fixed asset, it takes time to convert it into hard cash.

Well, there is money to be made in the real estate, however, you will have to deal with a lot of things, from lawyers, to renters and construction workers. When you are investing in stock market, all you need to do is go with buy order to sell order whenever the buying price and selling prices matches your target. Therefore, in my case, stock is a better investment.
 

cmoneyspinner

Active member
You're right. I had a husband who did both. He started with stocks first. When he started you needed $500 to open an account. He scraped up that amount and dived in. But then he started watching these people on television talking about how much money they made in real estate investing. That took him in a different direction. I won't say he didn't make more money than he did when investing in stocks. But, as you say, there is so much more that is involved. And if you lose your properties through foreclosure because of financial hardship, it is so painful. Even though I went through that crisis with my husband, I would say ... IF you can invest real estate ... DO IT!!
 

Mika

VIP Contributor
My best advice is to start with stock market investment, and then move to a safer place like the real estate market. The stock market can give you good returns, you can invest with a small amount. If you invest in IPO, you can even become a millionaire. However, the stock market is very risky. You will hold in a hope to sell only when the value reaches a certain point but in the meantime, it might start falling down and reach the point below your buying price. Real estate provides secured investment opportunities. There are drawbacks of real estate investment, for example, you need a lot of money, you need to deal with legal issues, real estate market can also crash, but despite all these facts, real estate is a better investment because you can use your real estate property to make money, through rental income, or start living in your property to save money on rents.
 

Ithedicious

Valued Contributor
I don't think real estate investment prices are down because everything now is very high over here because of high rate of inflation and the price of every commodities will always be on the high side until the economy of the country stabilizes to some extent.

When determining if real-estate and stock-market are the best investment we have to put so many things into consideration . In terms of real estate investment it requires a huge sum of money and if proper research and everything has been done perfectly the possibility of losing in this market is very low and is among one of the most profitable investment in the world .

In the other hand , the stock market will present a better opportunity for people to invest irrespective of their capital. The possibility of losing is higher than real estate. Personally I will choose real estate over stock market if I have to make this decision for myself.
 

cmoneyspinner

Active member
I have to add on to my previous comments because I forgot to say this. In the USA, there is something called REIT which stand for Real Estate Investment Trust. For those of you who don't want to buy real property, this is an excellent real estate investing alternative. It is modeled after mutual funds and includes all real estate property types: residential, commercial, etc. Investopedia explains REIT in detail. (Real Estate Investment Trust (REIT): How They Work and How to Invest - investopedia.com/terms/r/reit.asp)
 

Sotherefore

VIP Contributor
Personally if I have the money I wouldn't even consider stock market for my investment because I see it as a way losing money. Real estate investment is the real deal because that is one of the most profitable Investment and sometimes the value of your assets is not likely to depreciate except on rare cases that your property is not worth the value you have bought..

There are different ways people can be investing in the real estate , such as investing in land and building in them for rental purposes or by direct investment in land and renting it out for people to live in.
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Personally , the only challenging factors for me that could prevent me from investing in any of my favourite market is that it will require is a huge sum of money for me to start investing in real estate. That is the challenging factors now.
 

LoukiaCharilaou

Valued Contributor
If you want to invest this is the best time, stock market has gone down, real estate property prices have dropped, and even crypto prices have gone terribly low. However, if you are a newbie, you might be confused about where to begin.

You can start investing in stocks even with $100. However, that is not possible with real estate. You need a lot of money to invest in real estate.

Stocks are liquid income, you can sell your stocks whenever you want to get money instantly. However, real estate is fixed asset, it takes time to convert it into hard cash.

Well, there is money to be made in the real estate, however, you will have to deal with a lot of things, from lawyers, to renters and construction workers. When you are investing in stock market, all you need to do is go with buy order to sell order whenever the buying price and selling prices matches your target. Therefore, in my case, stock is a better investment.
Investing in stocks is a wonderful idea. I am interested in investing in stocks so as to make some money quickly. However, I am a beginner, so I have no knowledge of stocks. In this respect, please share with us some information about this investment like which site is the best for stock investment or in what kind of stocks we shall invest. Thanking you in advance.
 

Suba

Moderator
Staff member
We cannot give views or judgments, which narrow the understanding. Because I think both stocks and real estate investments have their own characteristics (advantages and weaknesses). Although since the time of our ancestors real estate and land investments were the most profitable, real estate prices rose from 5-15% per year. While the main risks of real estate are natural factors such as earthquakes, floods etc. while the other risk is bad location, sometimes it takes time to wait for suitable tenants etc. So investing in real estate is not for everyone. even so, real estate investors still have to diversify their investments in other assets such as stocks, and crypto. Now you can also invest in Real Estate Investment Trusts (REITs) in the form of securities similar to stocks. Stock investing also has some disadvantages such as fluctuating prices, and the possibility that you will get a capital loss, and the risk of liquidation or the company going bankrupt.
 

King bell

VIP Contributor
Which is better investment : Real Estate or stocks?

Investing in real estate and investing in the stock market can be a difficult decision. These investments are typically looked at differently and have different risks associated with them - some people might argue that one investment is riskier than the other while others believe they are just as risky. The truth of the matter is, both investments require money to be spent upfront and then time before any profit can be realized which might make someone more hesitant to invest in one or the other.

In order to make a better choice , one must first determine the objectives of their investing. So if someone says they want to buy a house for investment, the next step is deciding whether the property needs improvement or not. If it does, then it is most likely a good idea to invest in real estate.

Which investment is better depends on the person and their objectives. For example, one of my friends wanted to turn a small condo she owned into a 1,000sf home and invested $70,000 in real estate and another friend wanted to turn three of his rental properties into duplexes.
 
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