WHY REAL ESTATE INVESTMENT BEATS THE STOCK MARKET?
The stock market has always played the role of a barometer to the economic mood of a nation. Real estate is one of the prime elements in the latter context. In fact, an interesting and important relationship exists between real estate investments and the stock index. While both offer a profitable investment opportunity, both also carry risks that complement each other. A common belief has been that the profit margins associated with stock investment has been higher when compared to alternative asset investments. Stocks are liquid and flexible, whereas real estate is not. Also, stocks offer growth rates that real estate investment can rarely match. Lastly, stocks are also easier to acquire and operate than buying a property as an investment. Investment property also includes several added elements like insurance, maintenance, taxes, legal fees, broker commissions, etc. It has also been observed that dramatic movements in the global stock market will throw up salient d...