DC Fawcett Real Estate
Virtual Wholesaling in real estate business has been a very lengthy process though it pays well at the end of the day when we sell the property. However, selling is not easy as it involves a lot of paperwork which involves the important documents such as a deed, sale bill, and affidavit. DC Fawcett gave the guidelines about how to generate leads and close the sale.
This topic is about the difference between the stock market and real estate. There has been a controversy between the two.
Stock Market Vs Real Estate
Real estate investment means purchasing a physical, tangible land or property. Whereas buying the shares of a business means buying the part of company ownership.
Many feel that investing in real estate is better as they are real. One can touch, feel and inspect the property which you own are going to own. Moreover, you can exercise the control over the value and use the investment. In stock holding, you cannot touch and feel the property.
With respect to liquidity, stocks are more liquid as it is easy to buy and sell the shares. Borrowing against the stocks is easier than borrowing against the investments.
Investment in real estate is greater than investing in the stock market.
Both the trades involve a lot of risks but are rewarding if the planning is proper and right decisions are taken at the right time. However, if there is a slump in the market, you can still use the physical property to live, rent and earn a residual income. The same thing cannot be in the case of share market unless it picks up.
Real estate involves a lot of legalities as the necessary papers have to be ready even before the prospective buyer comes to see the property. In the case of the stock market, no such thing is needed. Though both of them are transferable, you can transfer the shares more easily.
In the case of real estate you have to pay the tax, electricity and maintenance even if it is unoccupied or vacant. The same does not imply on stocks.
With the time, the real estate price will always increase. Even if you get a lesser amount than expected, it only reduces the profit margin, but you can never incur a loss, i.e. to say, the real estate value can never be less than cost price. In the stock market, the rates keep fluctuating. The sale rate can be less than the purchase rate.
In real estate trade, the investment choices are limited as you can invest either on land or building. It may be either a residential property or commercial property. In the case of the stock market, the investment options are more.
Both the trades have their own advantages as well as disadvantages. Nevertheless, both of them are rewarding. It all depends on the knowledge and interests on both of them. So there is no clear winner among them.