Investing in land or investing in stocks? Investors often wonder which route will lead them to success. While some experts say that investing in land is the better investment, others swear stocks are the best. This is hence an understandable dilemma. This article seeks to answer the question of whether the land is a better investment than stocks.
Stock Investment
When you purchase shares of stock, you are buying a part of the company. You become entitled to a cut of the profit if there is any whether the company manufactures motorcycles, sells ice-cream or creates video games.
You become one of the company stallholders and will elect the board of directors who will watch over the management. They will also decide on how much cash to be paid out as dividends and amount of profit to go into the expansion of the company.
Land Investment, Waiting for Success
Majority of investors choose land investment due to value appreciation with time. Unfortunately, they come to learn that this happens at an unbelievable slow rate if it ever happens at all.
Land investment entails that you will have to wait for any success such as making cash in real estate or return on investment. One has to wait for some years for the land to appreciate a good amount of profit.
Stock Investment, Quick Success and Diversification
Research has proven that high-quality stocks offer increased profits year after year. One also has a chance of increasing the cash dividends meaning that you will earn more and more cash every year as the company profits grow.
It gives you a chance to have a stunning yearly profit return without doing anything. More so, stocks are more liquid than land. It is possible for one to sell their stock shares in seconds while it takes days, weeks and even months to find a land buyer.
Why Land Investment Is Better
Land investment can be decrypted, unlike stocks. Land gives you a tangible investment which you can feel and look at. The numbers and documents are practically transparent, and you will learn assets and liabilities evaluation as a buyer. More so, you can hire professionals including consultants, lawyers, and surveyors to aid in property research before submitting your offer.
The demand for land is growing, and in about five years to come, you can sell it for the right amount of cash. This makes it difficult for you to be defrauded. Arizona Land Partners will help you purchase good land suitable for your investment. Land investment does not require you to do anything. If the land is ideal for building, the battle is already won.
Risks Associated with Stocks Investment
Despite the prove that stocks generate more wealth over a short period, the prices of stocks can face extreme fluctuations in a short time making it a risky investment.
More so, stocks investment requires discipline to make a profit. Most investors are too fickle and emotional that results in the loss of their invested money. When the economy of a company is facing challenges, stocks become very volatile. Lastly, stock investors always have bankruptcy at the back of their minds. If for instance, a company runs bankrupt, your stock investment will be dissolved.
Conclusion
Land investment and stock market are different types of assets and investments. If you weigh the pros and cons of land investment against investing in stocks, you will come up with one definitive answer. Land investment is better than stocks.