| Definition |
Investment in physical property like land, buildings, or rental properties. |
Investment in shares of publicly traded companies. |
| Liquidity |
Low liquidity; selling property can take weeks or months. |
High liquidity; stocks can be bought/sold quickly on exchanges. |
| Entry Cost |
High initial capital required. |
Relatively low; can buy shares for small amounts. |
| Risk Level |
Generally lower volatility but subject to market and location risks. |
Higher volatility and market risk. |
| Return Type |
Rental income + property appreciation. |
Capital gains + dividends. |
| Management |
Active management often required (maintenance, tenants). |
Passive; managed by company and stock exchanges. |
| Tax Benefits |
Mortgage interest, depreciation, and other deductions possible. |
Dividends taxed; some tax-advantaged accounts available. |
| Market Hours |
Accessible anytime; transactions not limited by market hours. |
Only during stock exchange trading hours. |
| Leverage |
Easily leveraged via mortgages. |
Leverage possible through margin accounts but riskier. |
| Transparency |
Less transparent; valuations subjective. |
Highly transparent; prices available real-time. |
| Income Stability |
Generally stable through rent, though can fluctuate. |
Dividends vary and are not guaranteed. |
| Diversification |
Harder to diversify with limited capital. |
Easier to diversify across industries and sectors. |
| Time Horizon |
Typically long-term investment. |
Can be short-term or long-term. |
| Inflation Hedge |
Often good hedge as property values and rents rise with inflation. |
Mixed; depends on company and sector performance. |
| Accessibility |
Requires more knowledge and effort to enter. |
More accessible for beginners. |
real estate vs stock investment