Investment in Real-estate or Stocks : Padmasri Townships

Asking the questions, “Which is a better investment—real estate or stocks?” is like asking whether chocolate or vanilla is superior or if an Aston Martin is better than a Bentley. There really isn’t an answer because a lot of it comes down to your personality, preferences, and style. It also comes down to the specifics of the individual investment.

• Real Estate: When you invest in real estate, you are buying physical land or property. Some real estate costs you money every month you hold it — think of a vacant parcel of land that you hope to sell to a developer someday but have to come up with cash out-of-pocket for taxes and maintenance. Some real estate is cash generating — think of an apartment building, rental houses, or strip mall where the tenants are sending you checks each month, you pay the expenses and keep the difference as the profit.

• Stocks: When you buy shares of stock, you are buying a piece of a company. Whether that company makes ice cream cones, sells furniture, manufacturers motorcycles, creates video games, or provides tax services, you are entitled to a cut of the profit, if any, for every share you own. If a company has 1,000,000 shares outstanding and you own 10,000 shares, you own 1 percent of the company. Wall Street makes it seem far more complicated than it is. The company’s Board of Directors, who are elected by stockholders just like you to watch over the management, decides how much of the profit each year gets reinvested in expansion and how much gets paid out as cash dividends.

 Investing in Stocks

1. Despite the fact that stocks have been proven conclusively to generate more wealth over the long run, most investors are too emotional, undisciplined, and fickle to benefit. They end up losing money because of psychological factors. Case in point: During the most recent collapse, the Credit Crisis of 2007-2009, well-known financial advisors were telling people to sell their stocks after the market had tanked 50 percent, at the very moment they should have been buying.

1. The price of stocks can experience extreme fluctuations in the short-term. If you know why you own shares of a particular company, this shouldn’t bother you in the slightest. You can use the opportunity to buy more shares if you think they are too cheap or sell shares if you think they are too expensive.

1. On paper, stocks may not look like they’ve gone anywhere for ten years or more during sideways markets. This, however, is often an illusion because charts don’t factor in the single most important long-term driver of value for investors: reinvested dividends. If you use the cash a company sends you for owning its stock to buy more shares, over time, you should own far more shares, which entitles you to even more cash dividends over time. 

We do Have Open Plots available at Amangal, Srisailam Highway.

If Interested please do Call us : +91-9133323091