This new study explores the comparative benefits of real estate and securities investments. Crunching data on profit, liquidity and additional revenue, Tranio’s experts challenge the generalised belief that higher risk earns higher return and show that investors with long-term profit in mind are better served by real estate in new article.
— Liquidity and transaction costs: it’s a well-known fact that real estate takes longer to sell and incurs more fees costs than securities. However, property investors are less concerned with liquidity and less daunted by the prospect of a long sale than their equity counterparts.
— Real estate is not volatile but steady: securities can easily outpace the gentle canter of real estate value. Nevertheless, there is no golden rule for high profits and good investments. Both stock and real estate markets are susceptible to external disturbances, especially in the current economic climate.
— Risk, returns and turns for the worst: property price fluctuations are less violent, while stocks are more volatile and more sensitive to marreal ket changes. Investors can win big with securities, but their value can plunge suddenly. In 2009, Europe’s major share indices shed 40–60% of their pre-crisis value while property only lost 4% on average. Real estate is less vulnerable to crises and by growing faster than inflation, it protects money from devaluation.
— Dividends and rental income: securities are supposed to produce additional revenue in the form of dividends and coupon payments, but companies don’t have to distribute profits and low-risk bonds are also low yield bonds. Real estate can deliver steady streams of income that smart investors can stretch well beyond the 7% mark if they get into new markets like retirement homes.
Get the full report here. It’s free to use and republish with a reference to Tranio.
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