Investing in property or shares – why investing in property is likely to be better for you.
It seems like there is a worldwide trend of being obsessed with property and property prices. We seem to be interested in how much people buy their homes for or how much they pay for rent. If you see a realtor on your street, and then a sign goes outside someone’s house, why do we check what how much it is selling for? It seems our obsession with it makes sense, though. A property is one of the best things that we can invest in. So many people who think about investing in property or shares opt for the property because it seems to be the much safer option.
So why is this?
First of all, most people get their property with a long term goal in mind. Most people don’t think of just moving in a year if they can help it anyway. Most people are looking for a long term investment and staying put for a number of years. As many real estates investing websites will tell you: there is peace of mind with buying property. That is, if you need to, you could just sell up and take the cash. But if all goes to plan, they can sell later in life. Using the money for the children or perhaps a retirement. With investing in something like shares, it is much riskier. People don’t tend to be ‘in it’ for the long haul. So as a way of generating money, it is less likely.
One of the second reasons that a home is a much better investment is because we spend a lot of time and money in choosing it. We are going to be spending a lot, so we research and take our time with the decision. How many people do we know what just start to invest in a company’s shares just because they had a tip off from a friend? Or they read a great article about a company? There is much less research that goes into shares. So as a result, it is a little more risky.
Add value to it
When you buy a property, there are ways that you can add value to it. You could renovate the whole house or even extend.
You know getting a conservatory or a loft conversion is a great way to add value to your home. Is it the same with shares? Not at all. There is no real way that you personally can have an influence on what you have invested in shares. So property is better because you are in more control. There might be a housing market crash, but you don’t have to sell up just then. You can bide your time and wait until prices start to increase. You need somewhere to live after all.
I do understand that houses are more work and do require maintenance. Overall, I feel that they are a much healthier investment to have when you compare to investing in shares. What are your thoughts on this? Do you agree or not? Let me know if you have had any experiences of investing in property or shares, in the comments below.