Active Investing vs Investing In The Stock Market

One of the most popular topics in real estate is the question - which is the better investment option? And it is not surprising at all, future investors are looking for the best ways of making an investment in real estate and are learning about the benefits of them all. So today, I will be answering one of their questions and compare two investing options - self-investment and passive investing in the stock market.

First of all, no matter what you need it for, everyone is making an investment in real estate to earn better money or get that dreamy cash-flow and escape from all the worries related to money. That’s why it is important to always look for the safest option of investing, that will not bring us any surprises and where we won’t be risking our whole capital. And looking from this perspective, self-investment is definitely a much better form of investment than the stock market. Let me explain:

Investing in the stock market means purchasing a share of the company, in hopes that the share will grow its value over time and you will be able to sell it for a better price than you bought it for. I mean, even from the first sentence, this already seems sketchy, all you have is a hope for better income. But it gets even riskier, like the fact that the prices of your shares absolutely depend on the prices on the market. Meaning that you can’t possibly do something to grow its value yourself and in case of the prices of the shares going down, your investment might underperform instead of bringing you success and you might be forced to sell it for even less price. Which is not what future investors are looking for at all.

Fortunately, we still got many better ways of making an investment such as self-investment. If you like having everything under control, having a stress-free life and being in charge of your own income, this is the one you should go for. Just imagine: you are either buying land or already finished building, you can rent it and get a safe, stable income every month or sell it for more expensive price and stay as a winner. Remember, prices of both 100% depend on you, what can be better than knowing what can you expect after putting your capital into the business?