Question

Difference Between Real Estate Investment and the Other Investment?essay?

Answer 1

Every person wants to find out new ways by which his or her wealth will grow. This is possible through investments. An investment involves spending a certain amount of money on an asset such that the value of the asset will increase in future leading to earning more return from the asset. Investments can be of many types. Some of them are: investment in stock, real estate, gold etc.

Investment in real estate is different from investment in any other asset as it involves the purchase of a tangible property. The property may be just simply held expecting that there will be an increase in price in future or it can be given on rent or it can be used to build a house in future. Thus, investment in real estate gives you a source of income and also involves a tangible property. In other types of investments, there may or may not be a real tangible asset involved. For example: shares investment.

Moreover, the real estate investment is easier as one generally knows the criteria that one needs to follow for selecting a real estate. But in case of stock investment, many people do not know about the ways in which a stock should be selected or on what basis should one select a stock. The changes in real estate market can be tracked and can also be predicted properly. But the stock market price changes can not be predicted properly. They are very erratic. So people consider real estate investment is safer than stock market investment. Also, real estate investment acts as hedge against dollar movements in the market.