The Stock Market vs.

the Real Estate Market

Maria Novoa Personal Finances- Period 5

03/10/2014

Learning to invest your money wisely is one of the best ways to build a solid savings over time. The sooner you start, the better prepared you will be, as the experience will help you avoid making the same mistakes. But it is also very important your education, to understand the investment options you have, and how to avoid scams and traps to invest and also where to find information. There are several ways of investment. The two most common are the stock market and the real estate market. If you are smart about investing, you will increase the money you have invested. However, there are some pros and cons of investing in either, because although those have advantages, you will always take the risk of losing your money. When you invest in Real Estate, your investment is something tangible. It is one of the more accessible ways to invest using borrowed money. Thats why Real Estate is often a more comfortable investment for the lower and middle class. While investing in Real Estate has many advantages, it also requires a lot of hands-on work. Sometimes when you get into a property, it has major problems and costing you even more than you thought in the beginning. Also when your property is unoccupied, it is going to cost you money every month, Because You Have to pay taxes, maintenance, insurance, etc. So instead of receiving money for your investment, that is causing you more expenses. In some cases it may be difficult and costly to sell the property later.

When you invest in the stock market you will be able to increase the money you have invested in large amounts, just buying stocks, and then reinvesting the dividends. Stocks ownerships dont required any hard work, other than make a good research, if the investment suits you. Another great advantage of investing in the stock market is that stocks both increase their profits each year and, furthermore, their cash dividends, as well. At the same time, stocks are far more liquid than real estate investments. That means that you can sell your stocks faster, in a matter of seconds. Despite the great advantages of investing in the stock market, if you lose a big amount of money in the stock market, it may take long time to regaining your original investment. In my opinion, to invest in the real-estate is a better choice than in the stock market, because despite the fact that real estate is not a liquid investment, that means it can take time to sell, it is more difficult to be defrauded in real estate compared to stocks. Investing in real estate is more accessible to the regular public that the stock market, that's why usually only the upper class invests in stocks. Personally, I consider it is better to invest your money in the way that gives you more security and less risk of losing your money, as it is the real estate, even though it takes longer or more work. In conclusion, one of the most important things you must do before you start a good business is to invest in your education. The more knowledge you have

about how to invest your money in the right way, investment for you will be less risky. Also, the real estate and the stock market are both good options, depending on the need of each person or the highest percentage of risk you want to take.

Bibliography About.com. (2014). Retrieved from http://beginnersinvest.about.com/od/realestate/a/real-estate-vs-stocks.htm. http://about.com. (2014). Bronchick, A. W. (2005). http://www.tampa4u.com/investment.html. Fund, I. E. (2014). http://www.getsmarteraboutmoney.ca/en/managing-yourmoney/investing/real-estate/Pages/Investing-in-a-rental-property-The-prosand-cons.aspx#.Ux0-SPl5Pzt.

Aprender invertir tu dinero de forma inteligente es una de las mejores formas de construir unos ahorros solidos con el tiempo. Cuanto antes empieces, mejor preparado estars, ya que la experiencia te ayudara a no cometer los mismo errores. Pero tambin es muy importante la educacin, para entender las opciones de inversin que tienes, adems de cmo evitar estafas y trampas al invertir, y dnde encontrar informacin Aunque invertir en Real Estate tiene muchas ventajas, esta tambin requiere de a lot of hands-on work. Sometimes when you get into a property it has major problems and costing even more that you though in the beginning. Also when your property is unoccupied, it is going to cost you money every month, because you have to pay taxes, maintenance, insurance, etc. So en vez de recibir dinero por tu

inversin, eso te est generando ms gastos. In some cases it may be difficult and costly to sell the property later.