Are Real Estate Investments Really Safer Than Stock Investments?
In the minds of most people, investing in real estate is actually a safer investment channel than stocks. In a way, in my personal opinion, this is not entirely true.
first, stock investment In Vietnam, there is a margin, if investment on HOSE has a margin of 7% while HNX and UpCOM are 10% and 15% respectively, but real estate investment is less volatile, but Its fluctuations are unpredictable and you cannot be sure to quantify what your maximum profit or loss will be, within your tolerance or not.
SecondReal estate investment, in addition to choosing land that is likely to increase in price, you must have a lot of investment experience to avoid buying disputed land, land with inadequate legality, land with the wrong area, land located in planning, etc., but investing in securities, you only need to care that stocks have the ability to increase in price, and other issues have been guaranteed by the State Securities Commission and the competent authorities on the legitimacy and interests of shareholders.
Tuesday, in terms of liquidity, stock investment is completely superior to real estate investment, most securities you can sell and match orders immediately and can even withdraw money immediately if you accept to lose. a small fee to advance to sell securities, all you need to do is sit at home or office and do it in a few minutes. As for real estate, today with the development of real estate trading floors, the transaction time has been significantly shortened, you can sell within a day but may also have to wait for a week, a months or longer and when you buy it, it also takes you months or so to get a certificate of land use right (or often called a red book).
Wednesdayin terms of costs when buying and selling securities will be much lower than buying and selling real estate, the securities transaction fee is usually 0.15% and the tax is 0.1% when selling securities, much lower than the cost when selling securities. Buying and selling real estate usually has to pay 1-1.5% to the floor or broker, 0.5% registration fee, not including costs such as notarization, making a certificate of land use rights (making a red book). ),…
Thursday Transparency in purchase and sale prices. When buying and selling securities, the price here is an agreement between the buyer and the seller, both parties know exactly how much they buy and sell. But with real estate buying and selling today, most people buy and sell through real estate exchanges, won’t know exactly how much their real estate is being bought and sold for, even if they don’t know what they’re buying. to whom to sell. If you encounter an exchange or a broker that does not have a “heart”, then you will certainly have to suffer a significant loss.
That is not to say that investing in securities is safer than investing in real estate, in each economic period, depending on the financial ability and understanding of investors in the field they invest. the risk will be different. So it doesn’t matter what you invest, the important thing is to invest in the field you love the most and try to be one of the best in the field you invest in.
at Blogtuan.info – Source: Soha.vn – Read the original article here
