Why Invest in Real Estate Instead of Stocks?

Real Estate in AustraliaWhen you’re looking to invest in Sydney, there are a number of options available to you. Two of the most attractive possibilities are stocks and real estate. With the bright future of the property market in Sydney, perhaps investing in real estate is the better choice. It offers certain advantages not found when you go into the stock market.

Real Estate Investment More Stable than Stocks

Prices of real estate are more stable when compared to that of stocks. Stock rates may change in just a short period because they are more dependent on market conditions. On the other hand, real estate is not that volatile, offering some kind of stability to your investment.

Lower Cost of Financing in Real Estate

When you have to borrow to finance your investment, financing costs for real estate in Sydney are considerably lower than that of borrowing for stock investment. Interest rates are also lower when it comes to real estate.

This is quite understandable since you have a tangible asset to support your financial obligations. But if you need additional funds for your stock portfolio, expect higher interest rates.

Real Estate Offers More Leverage

In the investment industry, the term leverage is important. This is the amount of money you can borrow against the value of your asset. You get a higher amount of money compared to ownership of stocks. It may even be uncommon to see loans drawn against assets in the form of stocks. This speaks well of real estate investment as financing options.

With the property investment atmosphere bright for Sydney, investing in real estate may be a good decision. There’s just one thing to do now — find the right properties.