Stocks Vs. Real Estate: Which Is Better Investment?
The problem with this comparison is that it ignores the effort of managing property. If you have spent hours every week managing your property, you really compare a passive investment in an investment that requires work and is not really fair.
I have some knowledge on stocks but, earlier my cousin had invested in stocks and had a setback. I know that you need to be updated in that but - What is the best option from both?
__________________
Select Prescott Apartments for Rent from the CLV Group.
you can always factor in/out the cost of management, or compare passive investments like NNN.
The reason I like real estate better is the control. Owning 1000 shares of company X gives little influence on the companies performance, whereas owning a 8-plex gives lots of control.
I think Chet is on the right track. But this is a pretty complicated question-- not the least reason for which is that they are not mutually exclusive-- it is possible to invest in both.
Perhaps the first step to sorting out which is better for you is to start with an analysis of your situation. If you are a high-income earner with substantial cash to invest then the effect of putting money into blue chips over substantial periods of time is perfectly adequate for retirement savings or whatever.
If, on the other hand, you are barely covering expenses now then the "2nd job" aspect of real estate investing offers opportunities that are not otherwise available.
Finally there are "hands off" real estate investment options where you partner with somebody else who does the management work and makes it much more like a stock product.
So I guess my answer is, "there is no universal "Better", depends on you, your resources, your goals, etc.