If you are reader of WMA Property Blog or reading this article, we’re sure your are likely to consider invest in property, but you’re not sure whether investing in property really makes sense in the current economic situation. You may be also wondering if you should be investing your hard earned money in the stock market instead.
5 Reasons To Tell You That Invest In Property Instead Of Stock Market Share on XYou may be also wondering if you should be investing your money in the stock market instead. Get rid of those mindset quickly and listen to us! Property investment is much more safer than investing in stock market, really! Read on for the 5 reasons to tell you that invest in property instead of stock market. Let’s get started!
Reason #➊: You will get the special information about the property
The major disadvantage of stock market investment is that nothing can remain hidden. Any company listed on the stock market should make all information including its finances available to anyone who seeks it. So it is impossible to have any special knowledge on a stock which no one would knows, and even harder to get profit from it.
But, with property investment, you can get the special information about the property market in the particular area that nobody else does. For instances, if you own a property in Penang, you will know the particular details about this area’s property market, which will be known only to a couple of people of whom only a few of them would be active investors. Therefore, this can help you to set the right price and market it to the right potential buyers.
Reason #➋: Property investment generates cash flow straight away
If you’ve checked the stocks that pay the highest dividend, they pay a 4% or less annually. This is consider as bad return especially when you think that the banks give you a return of just a 1% or less, but this is only a little over inflation. Hence, you can’t make much money till you actually sell the stock.
With property investment, you can rent out your property to the tenants and earn cash flow from it, of anything from 5% to 10% of the price of the property. Besides, you can earn a significant profit from sell out your property.
Reason #➌: You can look closer of your property
With property investment, you can inspect the property, talk to the property owner, discuss with your property agent, check on the neighborhood and evaluate the property area and property itself before buying it.
Apart from that, ask yourself, are you surely aware of how difficult it is for an ordinary shareholder to inspect the particular company, talk to its representatives and evaluate the corporation. No way, right?!
Reason #➍: Property is easier to estimate a its value
It is easier to value a property. If you have seen a luxury property and have no idea if its selling price being fair price or not, you can ask your trusted property agent to value it for you. You will always get an accurate information about the said property as they have special knowledge of the area.
With stock markets, the rates/ prices change every day and even every single minute. There is no way to tell if you are paying too much for a stock or worth it. Since it is never easy to evaluate a stock belonging to a company worth billions of dollars, unless you are Warren Buffett.
Reason #➎: Everything in property investment is negotiable
In property investment field, there is always have a room for negotiation. However, this does not happen every time or on anyone, because it depends on how desperate the owner is to sell, and of course, your negotiation skill is the main key.
With stock investment, there is no any negotiation is available. You have to pay whatever the market price is at the time you buying the stock.
Last but not least, regardless of you choose to invest in property or in the stock market, its all about your appetite for risk and personal knowledge. If you are an expert stock-picker, then investing int he stock market makes a lot of sense for you. But its risks is higher than property investment. That is the reasons most people find it easier to make money fro property than from the stock market.
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