Difference between real estate investment and stock investment

The real estate investment is and stock investment, both are very common among the local masses. But have you ever realized which a better option is? You will certainly say that stock investment is bit risky. Off coarse it is risky but this is not only the reason why you can come to the conclusion that real estate investment is better and safer. I would love to tell you about the reasons why real estate investment is better.

There is hundreds of reason. I will list only few:

1.Real estate's price always increases whereas the stock is a bit clumsy
Have you ever invested in real estate or do you have any real estate property. I certainly feel that you will realize that if you would have bought the real estate property for $100000 in 2004 then it would be really costing far above this price in 2008. However can you say this about stock? Suppose you invest $20000 in stock. Can you really be sure that this value will double after four years? Yes sometimes it really can but sometimes it can go other way as well. You are really not sure that in which direction it will go? However in case of real estate you are dam sure.

2.The real estate investment is not effected by the burst in the market
If stock market suffers a burst then all the investors are affected. However as far as real estate market is concerned even if there is a burst, the number of investors never decreases. Why is it so? Because all the investors in case of real estate are sure that any how the real estate market will come out of it. At least it a common belief that the price of real estate property always increase and the chances of downfall is very less.

3.Tax benefit
According to the US law the price of the real estate will depreciate to zero after twenty seven and half year. However this is true only for construction and not for land. The price of land remains intact. I must tell you that your taxable income is greatly reduced by this. If you bought the house for $100000 then its value will depreciate by $2909 every year which can reduce taxable income from other source like salary payment etc.

I have listed three advantages which real estate has over stock. I must also tell you that there are numerous advantages which you can just sit and count as far as real estate and stock are concerned. You will really end up in spending less money in tax if you chose the real estate for your investment.