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Investors often land up in a dilemma, whether to invest in real estate or stocks. Well, both these aspects are good for investment. However, you should know the pros and cons of investing before you make your move. Experts reveal that investing in real estate is a better decision. Here are the reasons explaining why you should invest in real estate.
When you invest real estate, you have a better control over the property. Stocks are subject to vulnerability due to changes in the market. A number of elements influence the stock markets, making the investment riskier. Considering the risk factor, it is wiser to invest in real estate. Besides, you can also rent off these properties for good returns. When you invest in stock market, the returns are not fixed, as the amount varies according to the changes in the market. However, when you go for real estate investment, you can get a fixed amount of rent every month.
Besides, another risk associated with stock trading is the leverage you take, using the money of other people. Fluctuations in the real estate market are common. In case you make a loss, you will have to pay back the amount of leverage you had taken. Therefore, investing in real estate is a better option. Although the returns on equity may seem to be higher, the investment involves higher risks.
Coming to the tax factor, real estate investment will help you to save a good amount. People who seek bank loans can get certain tax benefits, while they pay for the loans. On the other hand, the tax on income from stock trading is very high. Besides, if you are in the tax bracket of 28%, you will have to pay a good amount of tax every year on your income.
Real estate is a tangible asset, and it can deliver you a higher quality of life. Stocks are simply numbers, and you can get a better material satisfaction from a real estate asset. You can enjoy the comfort of your home, rent it out and cherish the living infrastructure.
In case you calculate the realistic expenses, it is better to invest in real estate. Besides, the value of property increases over the years. In big cities, the prices of property are increasing, and you can get good returns on selling them in the coming years. Whether you invest in residential or commercial property, the prices are expected to rise in the coming years.
The real estate market is less volatile, in comparison to the stock market. If you want to avoid the risk factor, it is recommended to go for real estate. Over the years, the real estate prices are rising, and are further likely to escalate. If you want to play safe, it is better to invest in real estate. You can get good returns in selling the property or renting it out. Considering all these aspects, investing in real estate is a better option for you. You can own your asset, enjoy your lifestyle and get good returns from your investment.
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