Real Estate vs Stock Market: Where to invest your hard-earned money?

financialexpress.com:

When it comes to investing, two popular options that often come to mind are real estate and the stock market. Both avenues offer unique advantages and disadvantages, and understanding these can help investors make informed decisions. While both have their own advantages and disadvantages, it is crucial to understand their relative merits and demerits before taking the plunge.

First and foremost, real estate investments are generally recession-resistant. While the stock market can be highly volatile and subject to economic downturns, real estate tends to be more stable. During uncertain times, property values may decline temporarily. However, they typically recover in the long run, making real estate a reliable investment choice.

Another advantage of real estate investment is the ability to leverage financing. Reputed banks often provide loans for up to 80% of the property’s value, allowing investors to multiply their purchasing power. For first-time homebuyers, this means saving on rental expenses. In contrast, the rental income generated can often cover the monthly mortgage payments within a few years for those investing in additional properties.

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Moreover, real estate is considered a highly-rated asset that enhances one’s financial stature. Owning property can improve an individual’s net worth and credibility in the eyes of financial institutions. These benefits can open doors to future investment opportunities and facilitate access to other financial resources.

In contrast, the stock market, equity, and mutual funds require diligent research and analysis to make profitable investments. Market trends, company performance, and