Should I invest in stock or real estate?

 

Stock:

A stock is a security that represents the ownership of a fraction of a corporation. It is also known as

equity. By investing in stock, you own a significant proportion of the corporation's profits which are

equal to the number of stocks they own. The units of stock are called shares and these are handled by

your stock broker who acts as a mediator between you and a securities exchange. 

Stock Exchange:

What is a stock exchange? How does it work? Well, according to layman language, stock exchange is

a market where stocks are purchased and sold. The stock exchange works in a trading manner where the

rates of shares keep changing depending upon the number of shares being sold and purchased.

Real Estate:

Real estate includes real assets or property in the form of land. This land is purchased and sold to gain

monetary benefits from it. Sometimes the investor goes an extra mile by building a residential or

commercial unit over the acquired land to sell it or put it on rent for a greater amount of profit. 

Types of Stock:

There are three types of stocks that people usually prefer based on their distinct properties. These are

listed below:

1. Growth Stocks

2. Defensive Stocks

3. Yield Stocks

Types of Real Estate:

Real estate exists in four types. These types are preferred on the basis of profit and benefits required.

Following are the types of real estate:

1. Land

2. Residential Area

3. Commercial Area

4. Industrial Area

Pros of Stock:

If we look at the advantages of stock, there are countless of them. Stocks have proven to be highly

beneficial which is why people have been investing in them over the past several years. The most

common and major pros of stock, which encourage investors to put their money into them, are:

1. Immediate monetary benefit

2. Dividend Income

3. Capital Growth

Cons of Stock:

Every coin has two sides. This means, as much as stocks are profitable they still have their fair share of

cons as well. The major disadvantages of stocks are:

1. Sudden Loss

2. Drastic market fluctuations

Pros of Real Estate:

Real estate is often called the gateway to financial freedom. This is the biggest advantage of investing in

real estate. Apart from this, there are several other pros that hold equal importance and value. These

pros are:

1. Financial security

2. Steady Income

3. Long term monetary benefits

Cons of Real Estate:

At times real estate can be risky as the biggest disadvantage would be to come across a fraud or scam.

Other than that you may invest in a nonprofit able asset which turns out to be a great loss of money.

Apart from these two, other major cons are:

1. Higher Transaction Costs

2. Low Liquidity

3. Time taking

Which one is better?

The pros and cons of stocks and real estate have given a clear cut comparison of both. Investment in

both has been beneficial but it is the predictability that makes one better than the other. 

In stocks, the market value changes drastically whereas in real estate market trends change over a

considerable span of time. The other point that makes real estate better is that you never experience loss,

you either make profit or the value of your property remains the same whereas in stock you can experience

sudden huge loss.

For real estate opportunities to invest and gain lucrative gains. A real estate marketing agency could be take into consideration who has many potential projects in Islamabad and Lahore. Which include Park View City Islamabad housing investment scheme and Capital Smart City Islamabad housing investment scheme and in Lahore we have Lahore Smart City Payment Plan and installment plan and Lahore Park View Payment Plan and installment plan are also best options for investment at competitive rates.

Read More Blogs: Some tips before investing in Real Estate Islamabad and Lahore