8.15.2009

Property or Shares - Which is the Better Investment?

From the investor's point of view, both territories can prove to be highly beneficial provided they make wise financial decisions and invest when the time is ripe.Deciding which the better investment is, especially in terms of return on investment for both short term as well as long term basis, has left many an investor stumped.

Advantages of Investing in Property:

1. Real Estate is a tangible asset and it's possible until date to control it with literally no money down. Something, which is almost impossible to do with stocks and shares. For instance, you could easily leverage a 100k investment property with a mere 5-10k. One major advantage provided by investment in real estate, when it comes to the battle of shares vs. property is the benefit of tax deductibility when controlling/owning or selling real estate.

2. Real Estate also offers serious Capital gains simply because property values are on the rise all the time. Why? Well, to put it plainly, the supply of land is limited. And as humans continue to fill up every nook and cranny on this planet; this is one commodity the demand for which will almost never stops increasing. In other words, property investments can provide an investor with serious capital gains over a very short period of time.

Advantages of Investing in Stocks:

Wall Street offers two great ways how you can profit from investing in the stock market. These are Capital Appreciation and Dividend Payouts. With the huge number of corporations floating their stocks in the market and turning over substantial profits with every passing quarter, there's a very real chance that your investment will continue to grow up to the point you wish to sell your stocks. You also stand to gain from the dividend payouts handed out regularly by these companies.

Despite the fact that in the topic of stocks versus property, the stock market may not look like a great place to invest your money in, especially considering the latest developments, it still is one of the best ways to make lots of money, fast, provided you have the necessary speculation skills, and can read the market correctly. Stocks are also an extremely liquid form of investment, which you can sell off at any time to get back your investment.

So,while shares vs. property may seem like a question with unlimited possibilities, it makes sense to do your research and see which area of investment you feel more comfortable with and maybe even divide your investments between the two, depending on whichever option serves your plans and needs better.

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