Why I Prefer Stock Than Real Estate Property Investment?

Why I prefer stock than real estate property investment? Let’s look at table below for comparison:

  Stock Real Estate
Liability/Asset Needless to say, it an asset. Is a liability if it does not generate cash
Power of Leverage For experienced investor, you can make use of instruments such as Options, margin trading or CFD to magnify your return. Yes, because the additional money will be funded by the bank.
Commission Unless you are big time investor, the most you need to pay per trade is roughly about $15, or even less. Agent’s Fees + Legal Work + Stamping Duty(Depends on every country). Probably in the range of $10k-$20k or more.
Interest Rate charges No such thing, unless you are doing margin trading or CFD. Yes, and the rate fluctuates all the time.
Renovation cost No such thing Depends on how nice you want the property to look like.
Passive Income Yes, there are stocks that give regular dividend. You decide your own rental.
Make money during recession Yes, for experienced investor, you can use Options, Short sell to hedge your position and still make money even during downturn. Never.

Lets simplify the table:

  Liability Asset Leverage Commission Interest Charges Renovation Cost Passive Income Make money in recession
Stock No Yes Yes Low No No Yes Yes
Real Estate Yes Yes Yes Very High Yes Yes Yes No

I think there is no need for me to explain further. You get the point. =)


2 Responses to Why I Prefer Stock Than Real Estate Property Investment?

  1. Susie Rodriguez says:

    OMG ! I simply found a error within your site! Check if your plugins is configured correctly!
    forex trading

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