Real Estate Vs Stocks: Plan Your Investment Well

Someone has rightly said that managing money is more difficult than earning it. As your earnings increase over the time, it is obvious for you to think about ways of investing it in the right direction. One of the basic ideas behind earning money is securing the future of yourself and your family. And to be rest assured that your next generation has the desired monetary support, you need to make smart investments. The best part of investment planning is that it gives you a sense of security and when you know that your future is secure, you can indulge in your luxuries now for life is short after all.

Now, when it comes to investments, making a choice between real estate and stocks is tricky. Also, individual life aspirations and desires play significant role. While both type of investments have their share of benefits and disadvantages, real estate is certainly a better option. So, before we quickly look into the benefits of real estate investment, let us first understand each.


Real estate investment implies buying a physical land or property. If you are buying this property for living in it presently, it is not considered a means of yielding profit. However, if the property is rented or the parcel of land handed over to some property developers, the spot becomes a regular source of revenue. In case of renting too, the difference between the expense and the revenue is your profit.

Stock investment, on the other hand, signifies buying a piece of a company, irrespective of what the company deals in. Depending on the amount of shares you own, a percentage of profit is yours. However, different organizations lay down different rules for stakeholders, which make the whole scenario a little complicated at times.

Why Real Estate Investment Wins the Battle?

Tangible– Real estate investments are tangible. If you buy a home in one of the new townships in Lucknow, for instance, you can see, feel and utilize it at your own discretion. As opposed to company stock, real estate can be one of the pillars for survival.

Measurable Returns– Revenues from real estate can be easily analyzed and quantified. Also, it can be sold off should there be some financial constraints to be catered to urgently. Stocks require you to trust the company and its reports.

Tax Benefits– Real estate investments are tax advantageous. The government, in this case, is on your side and, hence, you get a lot of exemptions from tax deductions and so on, something not feasible for stock investments.

Matter of Pride– When you own a house or a beautiful villa at some exotic location, you feel proud and the feeling lasts for generations.

So, plan your investments smartly keeping these considerations in mind as earning just for the sake of it is an empty feeling.

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