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Why property investment is better than the stock market

Generally speaking, owning and investing in property will provide a better return than many other investment opportunities. While the stock market has been long seen as a reasonable way to invest and gain returns or dividends there are many reasons why the property market may provide better opportunities.

Property has proven to be a secure investment for many years, providing growth and long-term capital gains. There is less volatility in the property market than in the stock market and investors typically see better gains from their real-estate investments over the long term.

Prices of stocks are subject to many fluctuations driven by economics, politics, and other external factors. Property investment is less subject to these influences making it a more stable proposition.

Unlike stocks, the property market provides tangible assets that can be sold or leveraged and can provide more opportunities for diversification. Using debt in the property market is markedly safer than trading stocks on a margin and can be structured to provide more stability. Owning a property that may then be rented can provide ongoing income not to mention offering some protection against inflation as real-estate has historically proven to be an effective hedge against losses in purchasing power.

Property investment has the bonus of being simple to understand. Where stocks and shares can seem complex to the uninitiated, most people grew up with a basic understanding of the real estate market. The concept of buying and owning property appears much more solid to investors than buying into a small percentage of a company on the stock market.

Weighing up the risks of the stock vs property markets and factoring in the ongoing income, lower risk, owning tangible assets, and in-built inflation protection makes property investment a winner for many busy or first time investors seeking relatively safe gains.

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