Self Investments vs Stocks

Today we will be discussing probably one of the most controversial topics between the real estate investors and agents. As everyone wants to prove that the one is better than another. And it’s pretty obvious why - everyone has their own opinions as to what is better for them and fits their lifestyle or needs the most. So whenever newbie investors come online to find more information about both self investments and stocks, they could get very confused as to what to believe and whose advice to follow.

When making a choice, the first thing that you should do is make up your mind:

What are you looking for in real estate?

What do you expect when entering the market?

What do you want to gain from investing your capital in it?

It all depends on you and your preferences, the only thing I can do is to show you how both sides work to make it a lot easier for you to choose between where to invest in.

Self Investment:

Self investing means, starting your own business in the real estate market, no matter the type of it. Either if you want to own residential, commercial or industrial properties, there are 2 ways of doing it:

1. You can buy vacant land and later with the help of a construction company, develop a plan for a building that would be in demand on the market.

2. Or buy an already existing building and update it by the plan mentioned above.

In both ways, you end up with the property of your own, which means you have the full responsibility for it and you have the freedom of using or managing it as you like. For example, if you are planning to build a multifamily property and work with the tenants, all the rent money stays with you and you don’t have to share with anybody else. On top of that, it is very tangible so you can even live in it to save up your own living costs.

People who would love to have their own business and like being in direct charge of their income while despising any annoying surprises, tend to invest themselves as it seems like the safest option for them.

Stock Market:

It is completely the opposite of making a self-investment. Investing in the stock market means purchasing a share of the company you are investing in. Investors purchase the shares of the companies that they believe might grow in the value over time and can later be sold for a better price.

The stock market doesn’t offer anything that self-investment does, not even the stable or safe income, as it comes with a lot of risks. The prices of your shares and the success of your investment completely depend on the prices on the market, which means that not only can your share’s value grow and earn you a lot of money but also go down drastically and your investment ends up underperforming.

As scary as it sounds, you might start thinking - then why do even people invest in it? Not going to lie, that was my first impression as well, but as I later found out, there are actually investors who like playing the up and down game of shares and enjoy taking risks a lot, no matter how confusing it may sound.

Well, we are all different, aren’t we?