It’s common knowledge that stocks over time thumps real estate in performance. There are quite several different ideals on this but the common denominator around is that equities over the past couple of decades have returned around 10% annually, while real estate is in the 4% estimate.
You can ask people who have acquired properties in red-hot markets. There will obviously be a lot of moving parts to this topic, so as you decide whether to invest your cash in stocks, we’ve prepared 5 of the most important considerations why you should consider stocks over real estate for investment.
1. Much more flexibility
Think you made the wrong choice, just press a button and you’re out of stock. Want to switch to real estate? Go ahead and pull your money. While it may take multiple tries to sell even the same property, with stocks, a little knowledge and application can get the job done.
2. Lower transaction costs
It’s possible to trade stocks for a cheap rate online. However, real estate offers ridiculous commissions as high as 6%. You would think with the growth of real estate companies transaction costs would significantly decline, but regrettably, they’ve done little to help lessen the expenses for consumers.
3. Less work and stress
The reality is that real estate will keep you busy with maintenance as well as neighbor disputes, finding tenants, etc. With stocks, you can tuck it away and just collect dividends, allowing you to focus your attention elsewhere such as your hobbies, spending time with family, your business, or doing other important things.
4. More diversification
If you’re like most of us, you can’t just go ahead and own properties in top cities in the Philippines. Stocks, on the other hand, allows you to invest in different countries as well as invest in diverse sectors.
5. Chance to invest in products you love
This is one of the fun aspects of stock trading. Apple fan? Buy the stock. Got an appetite for Jollibee? Buy the stock. It’s an awesome feeling to invest in products you like or are passionate about – of course, while earning significant returns.
Should you go with stocks?
With the reduced and calculated risk we have with stocks, we don’t see why not. If you’re keen on starting, check out Eastern Securities, which is one of the top partners of PSE or where stock market investment in the Philippines takes place.
ESDC is a proud member of the Philippine Stock Exchange and a part in this nation’s capital markets. They are a fully SEC licensed, registered, and active trading member and broker financial institution involved in a variety of financial services for our clients.
Indeed, real estate is the choice for younger persons looking to make their mark or veterans looking to diversify their investment. Check it out and see if it’s for you. Best of luck with your endeavours!
Thanks for sharing momshie .. Ganda rin pala mag invest dito . Thanks din for the tips ..