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5 Reasons Why Investing in Real Estate is Better Than Investing in Stocks

house graph reFor every investor, the bottom line is extremely important. At the end, what is the payoff and was it worth all the hassle?No one can predict the future but investors who have given great consideration to the matter know which is better.The fact is that when it comes to investment, there are some who firmly believe in the stock market and others who will swear by real estate.As investment opportunities, both have their advantages. However, there are a few reasons why real estate is better than the stock market.As an investor whose hard earned money is at stake, here’s why you should invest in real estate instead of stocks.

1. Stock Market is Volatile and Uncertain

 1966179Most investors find the stock market to be extremely volatile. The highs can be exhilarating, but the lows can be devastating.Why it behaves thus cannot be quantified or understood and this irrational aspect of it makes it extremely unpredictable as an investment opportunity.Changes in the stock market resonate across the whole market, affecting everyone directly or indirectly. Avid stock market watchers will claim that the constant spikes in the stock market can provide great tidings but there’s no saying when the tide will turn.This is not the case with real estate which is comparatively much more stable.

2. Real Estate Powers Higher Returns

 1950033Returns are of primary importance for every investor. A comparison of returns between real estate and stock market definitely shows in favor of the former.In fact, returns are phenomenally higher for real estate, making it far more suitable and attractive for investors.The reason for this is that property often appreciates better than stock and this has been proven historically as well. Even across a ten year period, real estate has been known to perform better than stocks in terms of appreciation.The wise investor will of course want to choose an option that gives them more returns for the same amount of money.

3. Property Ownership comes at far lesser cost

 1874548One of the advantages of investing in real estate is that you can own the property by just paying 5% to 20% of the whole value.Obviously, this cannot be done with stocks. Real estate offers investors higher leverage with this option.The sense of ownership is real and tangible in the case of real estate and this gives the buyer a psychological satisfaction as well.

4. Real Estate Allows for a Proactive Approach to Appreciation

 1397297Most people choose to enhance their property’s appreciation by making it more attractive to buyers or renters by doing interiors or increasing amenities.These elements help in appreciating the property value considerably.But there’s nothing of the sort that you can do with stocks where you are at the mercy of the market.

5. Greater Tax Benefits with Real Estate

 1251870The wise investor will always look for investment options that will save money and if it comes with tax benefits, then it’s even better.People take loans while buying real estate and often, they get tax rebates on principal and tax exemption as well.These advantages are missing in the stock market.