Many investors have traditionally turned to the stock market as a place to put their investing money. While stocks are a well-known investment option, not everyone knows that buying real estate is also considered an investment. Under the right circumstances, real estate can be an alternative to stocks, offering lower risk, yielding better returns, and providing greater diversification.
Whether it’s planning for retirement, saving for a fund, or earning residual income, individuals need an investment strategy that fits their budget and needs.
KEY TAKEAWAYS
The decision to invest in real estate or stocks is a personal choice that depends on your financial situation, risk tolerance, goals, and investment style.
Real estate and stocks have different risks and opportunities.
Real estate is not as liquid as stocks but it does provide a passive income stream and the potential for substantial appreciation.
Stocks are subject to market, economic, and inflationary risks, but don’t require a big cash injection, and they generally can be easily bought and sold.
CONCLUSION
When you buy stocks, you buy a tiny piece of that company. In general, you can make money two ways with stocks: value appreciation as the company’s stock increases and dividends.
When you buy real estate, you acquire physical land or property. Most real estate investors make money by collecting rents (which can provide a steady income stream) and through appreciation, as the property’s value goes up. Also, since real estate can be leveraged, it’s possible to expand your holdings even if you can’t afford to pay cash outright.
For many prospective investors, real estate is appealing because it is a tangible asset that can be controlled, with the added benefit of diversification. Real estate investors who buy property own something concrete for which they can be accountable.
THE WINNER
Real Estate: Versatility wins within Real Estate, you can purchase and rent for a generous and steady fixed ROI or you can upgrade and sell for a healthy profit. Alternatively using your property as a holiday home on short term rental websites is fast becoming a trend in the UAE due to the ROI owners/landlords are receiving and also not to mention the fact the UAE is the number 1 holiday destination in the world with Airbnb ranking it number 1 in the Holiday Homes rankings.
So whether you are looking to purchase as an end user or simply want the best possible returns on your investment within the secondary or primary market get in touch today and book a free consultation.