Real Estate Vs Stock Market: Where Should You Invest Money?

As a newbie investor, it can be challenging to choose the right track to begin your career. With so many online trading options on the table, it is normal to get tempted into choosing an investment that might not offer the returns you expect.
Online stock market and real estate investment are two of the most popular candidates on the drawing board. This is why, in this article, we understand the difference between the two. 

Understanding the Differences between Investing in Stocks and Real Estate

  • Real estate investment takes work

Unlike stocks, in real estate, you do not have the comfort of sitting at home and discovering potential properties where you can invest. You have to be on the move to identify and grab opportunities that look promising. 

As a real estate investor, you have to physically visit the sites, inspect the construction quality, seek legal guidance, and verify if the property titles are legal. Other factors like the neighborhood and construction time should also be taken into consideration.

When it comes to stocks, it is easy to invest as you do not need to travel much physically. If you have a demat account and trading account in India, you are set to go. These trading accounts give you access to trade in real-time. 

If you have a good knowledge about things, you can easily initiate a trade from the comfort of your home using trading apps.

  • The involvement of recurring costs:

Real estate investors will be required to bear many recurring costs like maintenance bills, taxes, utility costs, and more. However, in trading stocks, there are no such recurring charges involved.

As a real estate investor, you can always rent out the property to cut down on such bills. 

  • Liquidity:

It is easier to sell and buy stocks compared to selling Real estate properties. Selling a real estate property takes work. From including listing to registration, there is a long process involved. 

Stocks, on the other hand, can easily be traded in a few clicks through the trading account. 

  • Dependence on market conditions:

Stock and real estate investments differ according to the market conditions. However, it is important to know that stocks have exposure to market volatility. 

Thankfully, you can lower the risk of loss by staying with the asset for a long time until the market changes and you get some profits.

The same goes for real estate; You have to hold a property until the market improves to make a move. 

  • Dividends and sale of stocks:

Stock investments offer the scope to earn divided amounts. Here, the company offers a fraction of the profit to the investors. But when it comes to real estate investment, there is no scope for getting extra profits. You are stuck to the amount obtained by selling the property. 


Both real estate and stock investment have their own set of perks and drawbacks. It is up to you to choose the one which suits your goals and lifestyle the best. Consider the points in the article before making a call. It’s time you get started!