A short story: Real Estate Or Shares Which is Better?
When my friends were buying properties in 2008 I went to stock worth about 15M, as am talking to you some of them are gone just like that, to cut long story short the stock are worth about 200k now, and the house my friend bought same year with same amount is worth 50M.
What we have in Nigeria is not a stock market but Scam market.
My brother I will never invest in anything invincible again please go for your real estate.
The above was the story of a man who learnt his lesson the hard way, and advising his fellow investor on the right thing to do.
Now one of the frequently asked questions from first time investors is;
Real Estate or Shares Which is a Better Investment?
As an aspiring investor, you're likely wondering where to put your money for the best returns. Should you invest in real estate or shares? Let’s delve into the benefits of each and why real estate might be the better option for your investment portfolio.
Stability and Tangibility
One of the most significant advantages of real estate over shares is its stability. Real estate is a tangible asset – you can see it, touch it, and use it. Unlike shares, which can fluctuate wildly based on market conditions, real estate generally appreciates over time, offering a more stable investment.
Steady Cash Flow
Investing in real estate can provide a steady cash flow through rental income. This passive income can be a reliable source of revenue, helping to offset the costs of your investment and providing you with a steady return. Shares, on the other hand, typically do not offer this kind of regular income unless they are dividend-paying stocks, which can be inconsistent.
Leverage and Control
Real estate allows you to leverage your investment by using borrowed capital. This means you can purchase a property worth much more than your initial investment. Additionally, as a property owner, you have control over your investment. You can make improvements, increase rent, and manage the property to maximize returns. With shares, you have no control over the company's management or the market's reaction to various factors.
Tax Benefits
Real estate offers several tax advantages that can enhance your investment returns. Deductions for mortgage interest, property depreciation, and other expenses can significantly reduce your taxable income. In contrast, the tax benefits associated with shares are more limited and often more complex to navigate.
Inflation Hedge
Real estate serves as a natural hedge against inflation. As the cost of living rises, so do property values and rental income. This ensures that your investment maintains its value over time. Shares can be more susceptible to inflationary pressures, which can erode their value.
Long-term Appreciation
Historically, real estate has shown consistent long-term appreciation. While the stock market can provide high returns, it also comes with higher volatility. Real estate tends to be a safer investment over the long term, with properties often appreciating in value as the demand for housing increases.
Diversification
Adding real estate to your investment portfolio can enhance diversification. Diversifying your assets helps reduce risk, as real estate and shares typically respond differently to economic conditions. This balanced approach can provide more stability and security for your investment portfolio.
Conclusion: Real Estate for Reliable Growth
While shares can offer high returns, they also come with high risk and volatility. Real estate, on the other hand, provides stability, steady cash flow, tax benefits, and long-term appreciation. If you're looking to make a smart investment with tangible benefits and a proven track record of stability and growth, real estate is the clear choice.
Ready to start your real estate investment journey? Exploring the market and understanding the potential of property investments could be the key to achieving your financial goals.
And I can help you with that if you have more questions, Reach out to me: 09033717308, 07015973600.
I'm Nnaji Deborah Onyinyechi (ChismartProperty).
Comments