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Real Estate VS Stocks – Which is a Better Investment?

Investment is popular and attractive to people who want to make the most of their hard-earned money. Nowadays, real estate or stocks or both is on top of the investment options.

Before investing in real estate or stocks, you need to know that there is no perfect investment; they both have their advantages and disadvantages. Thus, your preferences and capability to keep up with risks should affect your decision.

So, real estate vs. stocks – which would you prefer?

Real Estate


  1. A real estate is a tangible asset. It can be a physical land or a property that you can see, feel, and utilize. It can provide a better quality of life. Moreover, before your purchase, you can inspect the property if it is in good condition to make sure that what you are getting is worth your hard-earned money.
  2. Complete control of your investment in real estate is possible. The decision to rent it out to generate passive income, to make repairs or improvements, and to sell it in the future are in your hands.
  3. The value of real estate properties appreciates over time. It is one of the rare assets that rise with inflation. Even during tough times, it is less volatile. When the economy is down, you can still relax in your home. Furthermore, you can protect your real estate investment through insurance.
  4. A property is a source of satisfaction. You can take pride in its ownership. Since it is tangible, you have a constant reminder that years of hard work definitely pay off.


  1. Even though the property is unoccupied, it can still cost you money. You still need to pay taxes and insurance and apportion a budget for its upkeep to keep it in good shape. For landlords, even vacancy and repairs can considerably affect profits.
  2. It takes time to buy a real estate property. Unless you are significantly rich, you cannot own properties in Tokyo, San Francisco, or the other prominent cities. A down payment is often a requisite and one must have enough money in the bank to guarantee that the purchase will not cause a savings account to become empty.
  3. Real estate is relatively not liquid for you cannot sell a property on a whim. It may take months before you can profit from its sale. It also takes a lot of hands-on work that can eat up significant time.




  1. Stocks are low maintenance. Investment in it can be left alone after the initial purchase and it will still pay out dividends. Because it requires less work, you can focus your attention elsewhere with confidence that your investment is still moving.
  2. Investing in stocks is doable even for young investors. It is even preferable to start young to maximize its potential growth. Shares can be inexpensive and you can determine its volume.
  3. When you buy shares of stock, you buy a piece of a company. The returns you earn if it is invested in prominent and persistently successful companies can certainly be of considerably high value. And historically, stocks have a high rate of return.
  4. With stocks, you can invest not only in your own country but even in different countries, in various sectors.


  1. You do not have control over what happens to your investment. You have to trust what the company reports. Although there is a historical data of the past performance of the economy, it does not secure future investment results. The value of your stocks can abruptly decline; thus, you do not have any option but to sell it at a loss or just wait for the economy to be back up.
  2. Stocks are not tangible. It is not even in pieces of paper anymore – except probably when you get a report of your monthly investment. It definitely takes time before you can enjoy tangible benefits – these are goods you buy with the money you earn after many years.


There is no definite answer as to which is a better investment – real estate or stocks. It is dependent on your preferences and style, but just do not go overboard. Before putting your cash into any investment, you need to essentially consider your capability, how much you are willing to risk, and the possibilities that might affect your investments in the long run. The best part is you can actually invest in both.

Which do you prefer – real estate or stocks? Share it with us in the comments section.

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