Updated, 6 Sept: This weekend we decided to take a look at two of the world’s most commonly used investment options; real estate and stocks.
From Edmonton to Manila, these investment vehicles are the top 2 choices of ordinary citizens looking to increase their wealth. With the world experiencing an economic turmoil, thanks mainly to the falling oil prices and the Chinese market crash, Edmonton and the rest of the world is experiencing a bit of a “financial-shock”; real estate prices falling, stock prices dropping like hot potatoes.
So, the question this Saturday on our heads is, Which Is Better, Edmonton Real Estate or Stocks?
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
EDMONTON REAL ESTATE VS STOCKS
- Here’s the big contrast between real estate and stocks, when you invest in stocks, you purchase a share of the whole company, its intangible (you can’t see it). But when you buy an Edmonton house or condo, you purchase a physical asset, which is tangible (you can see it).
- Owning a stock investment is a very risky since stocks prices are very volatile. On any given day, a stock price can go up 2x its initial price or plummet down -2x, while home prices are more stable. Yes, home prices do fluctuate, but it isn’t as extreme as that of stock prices.
- In terms of stability, as we have mentioned in the intro, real estate is a more stable form of investment FOR LONG-TERM INVESTORS.
- Here’s the best part in Edmonton real estate investments-the financing. Unlike in stocks, real estate investors can easily get long-term financing. Edmonton currently has a wide-range of available lenders willing to finance home buyers at low interest rates.
You can check out more details about this here: Edmonton Mortgage Updates
- The downside in real estate falls on its initial investment. In order for individuals like you and I to be invested in real estate, a large sum of money is needed. In Edmonton, potential home owners need to put down at least 5% of the selling price.
- In stocks, regular citizens would only need a few thousand bucks to be invested in certain companies.
- Stocks are notorious for those wild swings in its prices. US and Chinese stocks are the best example of these wild swings. A lot of factors add up to create these wild swings, most common are high-frequency trading where algorithms (or computer programs) trade high volumes of stocks by the millisecond.
- Managing the real estate property falls on the CON side of things. Edmonton real estate investors’ needs to be hands-on whilst stock investors can automate their buying and selling activities.
As our ending note, different people have different investment goals. There is no “one-size” fits all investment vehicle. If you compare the PROS & CONS, Edmonton real estate comes out better than any stock investment.
Remember, Edmonton real estate simply best for investors who are looking to preserve and grow their wealth with minimal exposure to risk.
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