Zack childress–Real estate investing or stocks? Deciding between these two can be intimidating and the preference for investing in real estate or stocks is two-edged and both are good in their own ways provided that you don’t go overboard.While both real estate and the stock market has its own benefits and drawbacks,to decide between the two and which one would work well for you totally depend on your overall financial situation and level of comfort.
When you are planning to invest in real estate,it means that you are buying a physical land or property.some real estate costs money during the holding period and some are cash generating,meaning a vacant land that you hope to sell in future costs you money,where you will have to come up with cash out-of-pocket for maintenance charges and taxes.on the other hand,real estate such as apartment building,strip mall or rental houses are cash generating where the tenants will send you checks each month.paying for the expenses you will keep the difference as profit.
As with stocks,the concept is quite different,for example,say you buy shares of stock,it means you are buying a piece of a company.Irrespective of the company type,you are permitted to a cut of the profit,if any,for every share you own.To be even more precise,if a company has 1,000,000 shares outstanding and you have possession of 10,000 shares,you own 1% of the company.If truth be told,there are advantages and disadvantages in both real estate and stock market, it is all about handling them right,the way it is meant to be.following are some of the reasons listed out as of why real estate is better than stocks and why stocks are better than real estate..know the differences.
Real Estate Investing
• Higher rate of return
• Much more liquid
• Leverage with OPM (other people money)
• Less work
• Tax benefits
Stock Market
• Much more liquidity
• Lower transaction cost
• Easier hedging
• More variety
Should i invest in real estate or stock market purely depends on you.As a matter of fact,there isn’t an answer for the reason that a lot of it comes down to your preferences,style and other factors as such and in addition it also comes down to the essentials of the individual investment.However,there are quite a few aspects of both that make them exceptional investments in their own way,but if you decide to choose real estate then consider the guidelines of Zack Childress who is a real estate reviews are enlightening to aspiring realtors.
