Advantages and Disadvantages Stocks Vs Investment Property

In the financial world, investors are individuals or institutions either domestic or non-domestic, which makes investments (form of investments in accordance with the type of investments chosen) either in the short or long term.


Sometimes the term “investor” is also used to describe a person who makes a purchase of property, currencies, commodities, derivatives, stock companies, or other assets. The goal, to make a profit and not a profession, and only for a short period only.

As an investor, thoroughness and ingenuity in looking at opportunities is the main demands. Investors also need to plan carefully when trying to choose the best type of investment. Between property and other types of investments such as stocks, certainly has its advantages and disadvantages of each.


The potential revenue gained from the property lease the property to other parties. The rental value depends on the market price and the ability of residents to pay rent at a particular time.

On the other hand, investing in shares will receive a dividend (distribution of profits) annually.

The increase in the price of rental properties is of course more surely than the increase in stocks and the results of others. That’s because basically everyone needs a home as a place to stay and shop or kiosk as a place to try.

Of course, in every investment there must be a risk. As property bubble that occurred in the United States several years ago.

But in areas of the property, there is no term “bonus”, in contrast to stock investments. The bonus shares are shares that were distributed by the company to investors taken from the share premium.

Share premium represents the difference between the selling price of the normal price of the stock, when the company made a public offering in the primary market. Bonus issue could be one of the main attraction for investors.


Because it possesses the rare, the price of land and buildings is bound to rise relative to the prices of other goods. Because the factor of scarcity creates its own economic value.

It is of course different from investment in the stock market. The price of a share of stock will go up if the performance is good, otherwise prices will fall if the company’s performance declines or worsens. Meanwhile, shareholders can not change at will the stock price increases.

inflation Hedge

Rising land and buildings every year has proved higher than the rate of inflation. The increase in land prices in the developing location of at least 15 per cent, while the inflation rate is under 10 percent.

On the other hand, the price of cement, steel, and iron always rise above the level of inflation, which is an average of 10-12 percent. This is what causes the land and the building of houses, shops, and apartments is an asset that is most resistant to scour inflation.

Instead, the stock is very difficult sector facing inflation, due to investments in the form of money (paper), its value can be eaten inflation. This condition causes investors in the financial sector could not maintain their purchasing power.

Management and Maintenance

Property investors have to spend some money and discipline in organizing and maintaining his property. In addition, investors also need to have insurance to protect his property from the damages that could be caused by a fire or other natural disasters.

Meanwhile, investors in the financial sector, such as stocks, do not require maintenance, because he would only accept responsibility mail storage.


In the property sector, there are many rules that bind, for both developers and buyers. In the real sector, government intervention and control is very significant, so sometimes it was so complex.

Conversely, the same thing does not happen in the stock market self-regulating (self-regulatory market). Here, the government is very limited supervision.