Across the world, investors either prefer investing in the stocks market or the real estate industry and majority investors go for stock investment as they find it easy and simple. This is because the investors consider making a real estate investment a bit complex and tedious process.
However, what is important to understand here is that under right circumstances real estate investments can yield greater rewards with lesser risks while also diversifying the investor’s portfolio.
Whether you are planning for retirement or saving up for college / travel plans or are looking ways to establish stable and secure secondary income sources etc. can be successfully achieved through real estate investments. However, in order to become a successful real estate investor, first you need determine your goals and budget and then plan a strategy to achieve your goals while maintaining your budget.
To help you out as a real estate investor making real estate investments, you can consult any of the real estate agencies in Islamabad as many real estate agencies in Islamabad have emerged in the past few years.
Before making investment in either stocks or real estate, it’s important to compare both in order to make an informed decision. In this article, we have compared both the types of investment for your ease.
Investing in real estate or stocks is entirely you own personal choice that depends on your goals, budget and the number of risks you are ready to take.
The first difference between stocks and real estate investment is that real estate investments are tangible. Meaning that if you invest in residential or commercial real estate property then you acquire a piece of land or building that can be seen physically.
Furthermore, the property appreciation of that investment increases as the area surrounding your property gets more developed while offering more facilities. In short, the amount you invested gets increased two folds.
For example, if you invest in residential or commercial real estate property in Rudn Enclave Rawalpindi then the value of your property would increase as Rudn Enclave location is ideally located on main Adiyalla Road. Moreover, according to masterplan shared by the developers of this housing society, this housing society directly links with the proposed Rawalpindi Ring Road. This would further enhance the value appreciation of your property in Rudn Enclave Rawalpindi.
Whereas, when you invest in stocks, you buy a small piece of the company and with stocks you can earn money two ways either by dividends or by value appreciation when the company’s stock increases.
Comparing stocks and real estate is similar to comparing apples with oranges. Stocks are not only expensive but are also illiquid whereas real estate property is expensive but offers perks like greater liquidity rate, tax advantages along with the greater return of investment unlike stock that offers perks once in a blue moon. Furthermore, real estate property can be easily leveraged with which you can reinvest in other market segments of real estate industry.
All these reasons makes real estate investment more attractive than stocks investments. Although the final decision of investing your hard earned money rests entirely with you, however, this was our research to help you in making an informed decision.
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