The competition between stock market investing and real estate has been going on since the mid 1960s, in order to prove to be the best source of investment returns.
The stock market was regarded as a place to invest, whereas the realty was considered to be more reliable in the past. The present scenario is more of a revolutionized kind. It showed visible signs of change in the mid 1990s and kept on changing since then. At present real estate, especially the residential realty that is purchase, renting, reselling and holding of realty assets is the matter of investment choice for the most of investors. This generally affects the condominiums and town homes located inside the urban cores but prove to be a boon for single-family assets. The primary reason of the investment revolution is the tangibility of assets. Most of the investors would opt for real estate investment where they would be able to see, touch, paint and above all feel the sense of security and possession, rather than the purchase of a share into a distant company over which the investor cannot access any control. Apart from psychological reasons it can be supported by a very valid reason, the reason of availability of financing. In the stock market, there is a constant fear of being severely affected by its loss, as millions of investors have been the victims of such losses, earlier. But, only a few buyers and sellers have been affected in the scandals relating to Real Estate. Lenders have become more comfortable with the purchase of realty market values than that of stocks and bonds. Banks generally give loans on appraised values, and an appraiser of a residential realty determines its real market value with a relatively higher degree of accuracy. This is easier than a stock analyst trying to evaluate the books of a corporation accurately. A financial institution would lend money far more easily to a qualified real estate buyer than to a stock market investor. Related content: buyers: stock market: assets: |
Tuesday, January 13, 2009
Real Estate vs. Stock Market Investing
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