Why Real Estate Investment Makes Better Sense than Investing in Stocks
- January 13, 2017
- Business and Management
- No Comments
There are several advantages of investing in real estate market instead of spending millions of dollars in the stock market. In fact, investing in real estate for profit is one of the most prevalent approaches to generating additional income in the United States today.
In this article, we'll consider just a few examples to exemplify why careful and intelligent real estate investment might make better sense to an investor than stocks. Before we get started, though, it should be stated that investing in real property is not a bed of roses without risk, and does comprise numerous downsides worth understanding. You can hire arcadia real estate broker via various websites.
Real Estate Investment Downside
1. Liquidity – Real property normally cannot be converted to cash overnight. Whereas stocks can be sold with a phone call, the process of settling equity in a real estate investment can take months.
2. Slow Market Reaction – Real property has a slower reaction time than the stock market and therefore needs more patience on the part of investors. Whereas the ups and downs of stocks are in real time and thereby let you to gauge your gains or losses minute-by-minute, this is not the case with real estate investing. You might have to wait months (perhaps years) before you realize the real worth of your investment.