Invest into Stocks or Property? That is the question.

Traditionally real estate offered lower risks, yielded better returns, and provided needed diversification. After the 2008 financial crisis, people changed their minds about the safety of investment into property. For example, UK millennials are falling behind the global trend when it comes to buying a home, and are less likely than their counterparts in China, to own their home.

Yet, investing in real estate or stocks is a personal choice, and it depends on the financial situation, goals and investment style. But, surely it is easier to buy one share of the Starbucks company for £100 through an ISA account on Hargreaves Lansdown, meaning an involvement of zero tax. In general, you can make money with value appreciation of the stock and dividends. Furthermore, there are even more instruments to operate but that would be associated with trading. Overall, benefits are visible, it consumes less time to execute commands, does not require huge capital, and usually, the money can be withdrawn quickly. However, developing and tuning investing strategies might take a significant amount of time, dedication, and the ability to stay friends with maths. Needless to say that it is hard to be a patient investor, as investors now hold onto their shares 0.8 years on average before selling them. In 1980, the average was 9.7 years, representing a decline of 91.75%. It would be hard to estimate what percentage of people lose money but hey, why do apps for trading always mention that most people lose money?

On the other hand, with the property, you have to save and put down a substantial amount of money, dedicate time for searching for a house, and arrange a mortgage to buy property as well as know the legislative aspect. This may seem complicated but it’ll allow you to acquire physical property that may bring you in tenants, or appreciate in time. It may seem like a win for stocks, but in the next post, I will outline the positives of owning a property and how Wectory may help landlords with the rent.