Why Buying Property Is Better Than Stock ?

Property is like the stock market; you have dozens of different classes. With property you have residential homes, hotels, commercial building, industry and etc.

Property investment

A bank will lend you money to buy a MYR 200,000 house, but the same bank will not lend you MYR 200,000 to buy shares. This is because property is an asset, which can be sold to pay off the loan. So, you no need to worry so much with the financial assistance if you really make decision to buy a property for investment.

As you can see, property market boom over coupled of years. With making money property, the rental income that gained should ideally be sufficient to cover the cost of financing and maintaining. With the steady increase in property price, property investment provides a safer way to grow your wealth.

Furthermore, you can make more money in property than stock market. The value might be appreciated especially in the fast growing areas such as popular region and under development area. On the other side, you can earn nothing or lost in the stock market if buying at a wrong period. However, there may have some risks for property investment due to fire & natural disaster. But insurance can protects it while there is no insurance for stocks.

With a fixed supply since there is limited land on this earth and our population continues to grow from time to time and ever increasing demand thus owning a piece of land will increase in value over the time. This is totally not same with my previous thought “property price going to drop” !!!

6 thoughts on “Why Buying Property Is Better Than Stock ?”

  1. Hi David, Great post on making money with property… there are so many homes for sale in our area here that if someone did have the money or could make an investment into property they would surly make money. On the other hand it’s sad to see so many homes that are in foreclosures that you wonder where this isgoing end. We also have many Senior Citizens that own a lot of land here that are unable to pay the property taxes that they are finding it hard to hang onto their land .

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