Property vs. stocks and shares: Four reasons property is the right choice
If you are looking to make money from investments, you don’t have to become a day trader.
In fact, there are many options available to you other than the stock market, and one of the most popular of these being putting your money into property. Read on to find out about why this may be the best choice for your finances.
Not as complicated
Both fields have their complexity, and I’m not saying that getting into the nitty-gritty of a property contract isn’t complicated. It just that most of us know, in a very basic form how property sales work.
Also, for when we don’t, there are surveyors, builders, and real estate agents out there that we can employ while still holding the majority of control over the deal ourselves.
One reason to choose property investment over stocks is the level of complexity required.
However, when looking at stocks and shares, you are limited to either putting all of your faith in a portfolio advisor who makes the decisions for you. Alternatively, you have to go it alone and learn all about open positions, pending orders and how the whole system works before you have any chance of making money.
You can track the trends more easily
Property is also a good place to invest your money because the trends in prices and demand are a lot easier to track than the individual investment options that are floated on the stock market.
With property, you have a smaller choice of factors to look at when deciding whether it’s a good purchase or not. These include things like whether it is commercial real estate, private homes, or land that you will buy, and how these are doing in the location you have picked for your purchase.
However, deciding whether gold is a good investment needs much more prior knowledge and forethought, as well as an independent understanding of the commodities market and the financial market in general.
Property is not as high risk
Many investors much prefer property to stocks and shares as they see them as a lot less high risk. Of course, with any investment there is some element of risk, but if the stock market folds you can literally be left with nothing.
Whereas if the property market falls, you will at least still have a viable building that you can either live in or rent out to get some sort of income, while you are waiting for the market to rise significantly.
The property market doesn’t move as quickly
Last of all, one of the key reasons many investors like to put their money in property as opposed to stock and shares is because the market doesn’t move as quickly.
This is important to a lot of folks because not everyone wants to have to read the Financial Times daily, stress out about the state of the market before breakfast, and make important decisions regarding money every day. Something they don’t have to do if they choose to invest in property instead of stocks and shares.