Why Invest in Real Estate Over Stocks?
ZUNE TH
S AT TA R
There are multiple reasons behind this, but many have grown wary of the unpredictability of the stock market. While financial experts anticipate stocks to have an upward trend over time, stock prices have been rising and falling in seemingly irrational ways in recent years, leaving many average investors confused. As such, real estate has become a ‘safer’ alternative for the following reasons.
MANY INVESTORS CONTINUE TO CONSIDER REAL ESTATE AS A VIABLE ALTERNATIVE TO INVESTING IN THE STOCK MARKET.
Flexibility Real estate offers investors multiple options, each of which has its advantages and can suit a range of investors. From residential and commercial properties to rental units and real estate investment trusts (REITs), individuals have a range of ways to get started.
Resilience The real estate market is prone to ups and downs. However, these swings are not as pronounced as what the stock market experiences, particularly with regard to political changes, current news, and other economic variables.
Underlying Assets Some investors appreciate that the underlying assets in real estate are actual investments, rather than the conceptual ownership that stocks offer. Having a ‘real’ asset is a confidence-booster for many investors.
Diversification It is possible to diversify a real estate portfolio so that an investor can have multiple properties in different locations, and possibly even invest in different types of properties. In this way, a loss of value in one location or with a particular type of property will not affect other investments.
Some investors appreciate that the underlying assets in real estate are actual investments, rather than the conceptual ownership that stocks offer.
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