04 Dec 2011

Real Estate versus Stocks – Which Investment is for You?

Choosing between real estate and stocks is like comparing apples to oranges. Both have the capability of bringing you great returns on your investment, but which one you choose depends largely on personal preference and what you are hoping to get out of your investment. No stock option can compare to purchasing a beautiful beach-front property on the Sunshine Coast. On the flip side, no property could ever bring you as large a return as if you had invested in Google before they got big. So like many things in life, you will want to do some research before making a choice.

The Pros and Cons of Real Estate

Investing in something tangible that you can look at, inspect regularly and even use if you want to, may be a great move psychologically for those who find comfort in owning something. Investing in property is also more of a ‘lifestyle’ choice than investing in stocks. If you will want to retire to somewhere warm, a great example of your options is real estate on the Sunshine Coast. In particular, Noosa real estate is a great to invest in over the next few years as the limited land still left available is snapped up.

The major downside of owning investment property is the amount of time and resources you must concede in simply keeping the property maintained. This is more hands-on than buying stocks, as you will need to make sure you constantly have tenants and are making the necessary repairs. If you don’t do your homework and manage it properly, your investment property could end up costing you money. R&W Noosa Holidays have a proven track record of professional management of holiday properties in Noosa. Their cleaning and maintenance schedules are second to none and will ensure your property stays looking its best and acheiving great returns for years to come.

The Pros and Cons of Stocks

When you buy a stock, you are essentially buying a piece of a business. Whether or not you choose the right business to invest in will completely determine whether you will make or lose money. Despite all the market crashes, buying stocks in the right business, reinvesting the dividends and being extremely patient has proven to be one of the most sure-fire way of making a lot of money. The other great thing about stocks is that once you have done your research and have chosen a business to back, you essentially just have to sit back and watch the money come in. Buying stocks also doesn’t have to require a huge commitment right away. It is your choice as to how much you want to put into it, and this could mean starting small and diversifying your investments as you start to get returns. This is much safer than putting everything you have into one piece of property. If at any point you change your mind regarding your stock investments, it takes a matter of seconds to back out, whereas with property you may have to wait months or even years to free yourself of the investment.

On the downside, the value of stocks is subject to extreme fluctuation over time. If you are psychologically or financially incapable of weathering the bad times until the stock market improves, then this may not be a good option for you. Having stocks can be an emotional rollercoaster so before you start investing, make sure you are confident in who or what you are investing in.

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