Tech Business News

Real Estate Vs Stocks: Which One Is Better?

Two incredible ways to make a killing off your money

unsplash.com

Don’t know what to do with your savings? These are two options that many people put their money in to generate returns. The two investments are uniquely different and they both have different reasons to invest. First of all, they are both passive incomes. Let me be clear, there are always risks when investing. Here are the reasons why you should invest in real estate or stocks.

A stock is where you own a share of the company. People can make money in stocks when the company’s stock rises so your stock would be worth more. Dividends are where the company gives some of its money to its shareholders. The average stock market return in a year is 10% and sticking with stock for many years could give people potentially massive returns. Investing has also gotten easier, there is no commission fee which means whenever people invest, they do not have to pay another special fee. However, the stock market is unpredictable. The stock market usually declines 10% from the highest point every 11 months. Investors must be patient since their stocks could be at a loss before it goes up again.

Now, let’s talk about the pros of real estate. Most homeowners make money by the rent money. These rents can increase over time when the home price goes up. This makes it a very reliable steady stream of income. When the home price goes up, this means that it is worth more. You can sell it and make more money than when you bought it. Although this makes less money than stocks, it is less volatile and can give you a steady income.

These are both incredible places to put your savings. If it is saving for college, retirement, or just to make money, these two investment areas will make you enough money. Stocks are a good investment because they generally have higher returns, but there is also a chance they could go down. A real estate is a good option for people who want a steady income. There are many other ways to put your money but these two ways are the ones you should try.